Yesterday, Reuters reported that Grand China Air, which is part-owned by billionaire investor George Soros, has agreed to form an airline in partnership with the Yunnan provincial government in China, according to a company executive. Reuters’ Fang Yan wrote:

Grand China Air, the largest shareholder of Hainan Airlines Co, will hold a controlling stake in the new carrier, the executive said, without providing financial details.

The new company, which is pending regulatory approval, will initially be limited to flights within the province but will apply for long-haul domestic and international routes in the future, he said.

The new carrier would be in direct competition with the Yunnan unit of China Eastern Airlines Corp, which controls more than 50 percent of the highly profitable market for flights in Yunnan, a popular tourist destination with striking mountain and river vistas.

Yunnan, China
Photo by Erica Law, stock.xchng

Source:

“Grand China Air, Yunnan govt to set up new airline”
Fang Yan
Reuters, June 10, 2008

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