Developed by DDB, the TV and print ads capitalise on last year's 'Year of the dragon' campaign, in which a dragon wound its way through various Dragonair destinations.
In the latest execution, the dragon leads viewers through the changes, including lie-flat seats, new colour schemes and inflight entertainment.
DDB associate account director Kerry Fitzgerald said the ads aimed to "raise the profile and image of the brand to a level on par with international, long haul airlines".
The campaign, aimed at Hong Kong-based business and leisure travellers in English and Chinese, is airing on local TV stations, the Times Square big screen and newspapers and magazines.
Recently, Dragonair - along with its events agency Frontiers Group as well as DDB - also took over the upmarket shopping and restaurant district of Xintiandi in Shanghai, with posters, banners, street flags and even airplane-tail shaped messages on restaurant tables.
The aim is to hit wealthy Chinese and expat travellers interested in leisure travel to Hong Kong.
The aggressive positioning comes amid increasing competition from Cathay Pacific which is trying to secure more routes in China - Dragonair's main market.