Dragonair is part of the Cathay Pacific Group so they will upgrade whoever they like, whenever they like depending on who will accept their latest rubbish 'package' - designed to tempt initially but inevitably will lead to frustration all round.
You will most certainly have to live in Hong Kong to get any education allowance and you will have to educate the child in Hong Long if in Primary education. There are not enough places for young children at Primary Schools in Hong Kong.
See the post about pollution and go almost anywhere else to get a flying job or you'll damage your children's health too!
