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"On the drawing board is the A350, something of a widened and upgraded A330, destined to compete heartily with Boeing's beleaguered (for now) 787 Dreamliner."
The original A350 program was as you describe - but when it was announced to customers there was a collective yawn from some and a violent no-we want a new aircraft from others. As a result Airbus went back to the drawing board and designed the A350XWB which has pretty well nothing in common with the A330 other than size and targets the 777/787 space.