Honda boss sees peace on the horizon

"I'd be very disappointed if we went into next season in a situation of flux," said the Briton, who put at 75 percent the likelihood of an agreement by then to end a long power struggle.

Honda are one of five carmakers threatening their own championship from the beginning of 2008 unless their demands for a greater share of revenues, more transparent corporate governance and fairness for all are met.

At the same time they have been talking to Formula One's commercial rights holders, represented by Bernie Ecclestone, and the governing FIA.

"Certainly by the time we go to Bahrain next year, I'd hope (that the threat is over)," said Fry, referring to the season-opening race on March 12.

"At the moment there still is a threat because we haven't resolved all the issues and the car manufacturers need another route in case the issues aren't resolved.

"But I think everything is proceeding well at the moment. We're making good progress but there's still work to be done."

Fry's comments came after former champions Williams announced on Wednesday that they would stay with the existing championship after 2007 rather than join any breakaway series.

The decision leaves Formula One split between five teams -- Ferrari, Williams, Red Bull, Toro Rosso and Midland -- on one side and five carmakers -- Renault, BMW, DaimlerChrysler's Mercedes, Toyota and Honda -- on the other.

No Defeat

Williams chief executive Chris Chapple said his team, who had sided with the carmakers until recently, were now satisfied their demands had been met.

"We've achieved a lot and, looking at where we are now, there is no longer a need for this threat of a rival series," he told Reuters.

"It's not a defeat for anyone but a reflection of how much has been achieved by the group (of manufacturers)... more money and better regulation were the two objectives and having done that we should get rid of the threat."

Fry said he understood Frank Williams' position.

"Williams clearly are not a car manufacturer...Frank's running an independent team and I think stability for the future is clearly very important to them.

"There's no hard feelings and it wasn't a big surprise.

"I think the other reason why it's not really a particularly big issue is that discussions between the teams and the FIA and (Ecclestone's) FOM have been progressing very well over the last few weeks.

"There's still work to do but in my view it's headed in the right direction and if we can resolve those issues which remain then a situation of stability is on the horizon," he said.

"There were earlier this year a number of genuine issues and it's not just the money issue. It was issues to do with the direction of governance of the sport and in the main those have now been resolved.

"I think we need to go into next season concentrating on the racing, the sport, the entertainment and I see no reason why that shouldn't be the case."