Grand China Air has agreed to set up an airline with the Yunnan provincial government, Reuters reported. American financier George Soros has a stake in Grand China Air, which is the largest shareholder of Hainan Airlines and will have the controlling stake in the new Yunnan venture. The new airline is waiting for regulatory approval. It will begin by operating flights within the province, but will apply for long-haul domestic and international routes. The new airline will compete against China Eastern Airlines, which controls more than half the market for flights in the lucrative tourist destination of Yunnan. China Eastern had some of its operating licenses on Yunnan routes suspended in April after some pilots returned flights to their departure airports in what may have been a strike.