CHENGDU, China—Air China aims to avoiding direct confrontation with China Eastern Airlines, as Air China builds up at China Eastern’s home city of Shanghai. State-owned Air China, meanwhile, is moving Shenzhen Airlines into the long-haul business, with a transfer of six Airbus A330-300s from its order book—though industry sources say the smaller carrier wanted aircraft that would fly farther. Air China will continue to open routes at Shanghai, Assistant President Zhu ...

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