China Eastern Airlines has agreed to set up a regional airline joint venture with state-run aircraft maker China Aviation Industry Corp. I (AVIC I).

China Eastern plans to take a 40 percent stake in the planned joint venture which will have a registered capital of US$139 million.

The deal is subject to approval from China's aviation regulator.

The move by China Eastern comes just days after it signed a cooperation agreement with China Southern Airlines, a step that may complicate a bid by China National Aviation Holding to take a stake in China Eastern.

Shanghai-based China Eastern is one of the country's three major air carriers, along with China Southern and Air China, the unit of China National Aviation Holding.