The airline says it plans to use the super-efficient and passenger-preferred Dreamliner to upgrade its regional and long-range service from its base in China’s largest city.

China Eastern Airlines has bought its rival Shanghai Airlines for Rmb9bn ($1.3bn) as it bids to become China’s largest airline with dominance in Shanghai as an aviation hub. The state-controlled airline, currently China’s third largest carrier, said it would raise about Rmb7bn by issuing new shares to strengthen its balance sheet.