>>1972100The 737 is a about twenty years older as an airframe design compared to the A320.
The thing with making a 797, is that it would enable Boeing to implement new tech like carbon composite materials and aerodynamic tech.
Thing is, it's not very clear if the 797 might end up DOA, especially if the industry shifts rapidly to hydrogen fuel.
Airbus has more or less already indicated that the A320 successor will probably be a hydrogen fueled aircraft.
Until the A320 is replaced, the A220 might end up cannibalising some of the A319/A320 market, and Airbus might be ok with that, so long as it hurts Boeing more.