I think AI has overlooked the 200 seat market. They have the A321 to 180 seats, and the A332 to cater for the 250seat market. 200 seat market, hello Airbus?!?!?
LH, SQ, AN and NZ are looking for aircraft in the 762/3 A335 class.
I can't remember the A335 specs, but as far as I know, it's an uneconomic plane for short domestic routes. Little wonder LH is more interested in the 753. Who is actually interested in the A335?
Why didn't the A310-200 succeed? The 767-200 didn't do too badly last time I checked? Maybe AI just didn't get the product right, not the market.
I suppose, at the end of the day, the A3XX is more prestigeous for the egos at AI, than a simple old 200 seater "replacement".