Passengers on Airbus’s next plane will be able to use the Internet and stream HD films as the European aerospace group attempts to take on its rival Boeing’s 787 Dreamliner.

Airbus Group unveiled the latest upgrades of its A330 aircraft today, which features Trent 7000 engines from Rolls-Royce, extended wings and aerodynamic technologies.

The aircraft will come in two sizes, the A330-800 Neo and A330-900 Neo, replacing the A330-200 that seats 246 passengers and the 300-seater A330-300.

The aircraft, which is expected to reach airlines in the fourth quarter of 2017, is also hoped to reduce fuel consumption by 14%.

Other features include full connectivity, an in-flight entertainment system that can show 3D films and mood lighting for passengers.

Tom Enders, CEO of Airbus Group, said: "With our decision to re-engine the plane, we will keep the A330 flying high for many more years to come.

"The development costs for the A330neo will be incurred from 2015 to 2017 with an impact of around -70 basis points on Airbus Group’s 2015 Return on Sales target.

"We have a very good business case and the A330neo, once in service, will continue to significantly contribute to our group’s earnings."