A senior executive of the American Insurance Group (AIG) wrote to the Tatas on July 8 saying, "we confirm that no airline is in control, direct or indirect, of AIG or any other funds through which we may contemplate investment in Tata Airline."

Similarly, the Government of Singapore Investment Corporation (GIC) also assured the Tata group on this score. "This is to confirm that no airline or airlines have any shareholding in GIC," said a senior official from GIC in a letter to the Tata group on July 3.

These facts were communicated to the ministry of civil aviation. In letters sent to the ministry of civil aviation in June and July, the Tatas repeatedly assured the government of full compliance with the policy guidelines.

The Tatas said that the two FIIs had indicated an in-principle agreement to review the project once suitable government approvals were in place. Further discussions with the FIIs can be undertaken by Tata Industries Ltd only once suitable government approvals are received, the Tatas wrote to the ministry.

The Tatas kept the ministry informed on the technical services agreement with Singapore Airlines (SIA). In a letter to the ministry in March and again in July, the Tatas submitted the full scope of the technical services agreement with SIA to the ministry.

SIA would provide assistance in establishing infrastructure, capabilities, procedures and systems in three crucial areas for the new airline. These areas included engineering and maintenance, flight operations and airline operational systems and procedures.

SIA would assist Tata Airline in setting up systems, practices and procedures in all these departments. It would also help in establishing a flight control centre and procedures concerned with passenger and cargo handling.

In a detailed written communication, the Tatas also assured the government that the airline will comply with all aviation policy guidelines once it comes into operation. The Tatas wrote that they will comply with issues such as FII representation on the board of the airlines will not exceed one-third of the board, once it is formed.

Also, no hire purchase, lease finance or loan agreement with a foreign airline will be entered into by Tata Airline. The airline will not empower foreign airlines enabling them to interfere in the management of the domestic airline.