So 797 is not a 321 / 322 competitor. It is a B788 / B789 / A338 / A339 competitor and killer. Considering that it will have one generation more efficient engines I suppose that Airbus will soon make their move and replace A330.
It wouldn't kill B787 or A330neo. The size different and the range capability are pretty different. Especially the fact that Airbus amp up the MTOW on A330neo.
But I would believe that Airbus would come up with A350-800neo with smaller wings and new engines in 2025. But again even this plane would be slightly bigger than A330-200, B787-8 or B767-400ER.
And instead of competing with B797, Airbus would just created an aircraft to fill the gap between A321neo and A350-900. Time and time again, many of their aircraft doesn't necessarily have 1-1 competitors.
Before the A330NEO was launched I considered a new smaller wing, wing box, landing gear and medium range optimized fuselage would fit in there. But Airbus decided to boost capability instead, probably they felt even a new A300/310 sized, carbon wing would not justify the investments.
Apologies Keesje; I initially brushed right past your graphic; but then looked with the attention it deserved and reconsidered that the 330-700 as shown would be closely parallel to say an 8-ab 797.
(Don't know what fuse length you were using; IMO the 797-6 and 797-7 fuses might bracket your 330-700).
So I'm visualising a similar set of plan diagrams, but instead labelled, from the left:
1) 787-8neo (9ab); (**)
2) 797-7 (8ab)
3) NSA-11 (6ab). (Say 2 seat-rows longer than the MAX10) (
I've surmised b4 that one of the two possible BA strategies is the 797 at 8-ab which not only takes-up the 767-200/-300/-400 space (in terms of passenger count); but also, once a plastic 8-ab fuse is built with nose+empennage sections; then the fact that the initial 797s will have minimal wings and not much thrust is just an early entrant to the BA portfolio. So thereafter the basic 8ab frame is ready to take-on any future AB A330neo replacement.
EG there is nothing to stop a later 797-based application with a (moderately) larger wing/engine pairing to fit sweetly under the forthcoming 787neo ...
(Above all the specifics above is that I regard the 787 as a BA design which has been an (unacknowledged) attempt to neutralise the A330 family.
Which I regard as high praise for the original A300 designers way back when. They surely got it right!)
(However I am not sure that some very convincing BA strategist would not floor me by proving that just as a good 8ab will (almost always) defeat a good 7ab;
so, equally, a good 9ab will (almost always) defeat a good 8ab!
(**) (And yes, yes I believe that I have assimilated the teachings of Lightsaber that in fact a 787-8neo will have just too much capability ... but I will leave it unchanged for the sake of simplicity ...).