The replacement for the Sonic Cruiser project was dubbed the 7E7. The "E" was said to stand for various things, depending upon the audience. To some, it stood for "efficiency," to others it stood for "environmentally friendly," etc. In the end, Boeing claimed it merely stood for "Eight," after the aircraft was eventually rechristened "787" when several Chinese airlines ordered the product.
The 787 essentially uses the technology proposed for the Sonic Cruiser in a more conventional airframe configuration. Boeing claims that the 787 will be up to 20% more fuel-efficient than comparable aircraft. This efficiency improvement will come primarily from the engines; the airframe weight saving due to high usage of composite materials will provide the rest. The 787 will also have advanced systems; for example, signals will be carried around the aircraft using a version of Ethernet, and the brakes will be electrically rather than hydraulically controlled, pushing towards the industry goal of a 'more electric aircraft'.

On December 16, 2003, Boeing announced assembly would take place in Everett, Washington, employing 800 to 1,200 people.
On April 6, 2004, Boeing announced that it had selected two engine types, the General Electric (GE) GEnx and Rolls-Royce Trent 1000 to power the 787. Significantly, this leaves Pratt & Whitney unable to offer one of their own engines to 787 customers. Boeing may have wished to rely on two evolved versions of existing engines rather than the higher-risk option of an all new Pratt & Whitney engine, particularly in light of Pratt & Whitney's recent failures in the Regional Jet market and failed PW8000 engine for the A318.

For the first time in commercial aviation, both engine types will have a standard interface with the aircraft, allowing any 787 to be fitted with either a GE or Rolls-Royce engine at any point in time. Engine interchangeability makes the 787 a far more flexible asset to airlines, allowing them to change from one manufacturer's engine to the other's in light of any future engine developments which conform more closely to their operating profile. The engine market for the 787 is estimated $40 billion USD over the next 25 years.

Any commercial launch of a new airliner can be expected to draw scathing comments from competitors, Boeing's doubt over the A380 and Airbus' mocking of the Sonic Cruiser are recent examples. The 787 is no exception, as Airbus' John Leahy has made attempts at refuting all of the claims that Boeing have made for the aircraft. Airbus is of course in no position to start development of a comparable plane, with the ongoing development of the A380, however Airbus might not be in such a dangerous position as they appear. Airbus is now offering a reduced weight A330 with the 787's next generation turbofans (modified to generate bleed air as with the proposed 747 Advanced). Although this proposed new jet, renamed the A350 , lacks the 787's widespread use of composites and advanced systems, Airbus still claims it will almost match the 787's performance and reduced operating costs.

On April 26, 2004, the Japanese airline All Nippon Airways (ANA) became the launch customer for the 787, then still-known as the 7E7, announcing a firm order for 50 aircraft to be delivered beginning in 2008. The order is valued at roughly $6 billion and represents the largest ever single launch order for a new Boeing jetliner, as well as illustrating market acceptance of the concept.
ANA will buy thirty 787-3, 300-seat, one-class aircraft for the domestic market, and twenty 787-8, long-haul, 230-seat, two-class aircraft for international routes such as Tokyo Narita - Los Angeles. The aircraft will allow new routes to be opened to minor cities not previously served, such as to Denver.

On June 28, 2004, Air New Zealand (ANZ) became the second 787 customer, announcing a firm order for two aircraft and options on 16 more. This unusual arrangement was likely precipitated by ANZ's perception that they needed to secure their delivery slots, far in advance. The aircraft will be used to develop new international routes and increase frequency on existing routes. ANZ was the first airline to announce which powerplant would power their aircraft, selecting the Trent in June 2004.

Blue Panorama of Italy and First Choice Airways of the United Kingdom placed orders for four and six examples, respectively, of the 787-8 on July 7, 2004. Primaris Airlines (run by several prominent industry veterans), which caters to business customers in the same vein as Switzerland 's PrivatAir, placed an order on October 21, 2004 for 20 787s and options for 15 more. The Primaris order represents the first American customer for the aircraft. On December 22, 2004, Japan Airlines ordered 30 787's with 20 options for close to $4 billion, and on December 29 of the same year, Continental announced an order for 10 787 airframes.

On December 31, 2004, Vietnam Airlines became the eighth airline to signal its intent to buy the 787, with an order for four jets. This was followed on January 28, 2005 with an order from China Aviation Supplies Import & Export Corporation for 60 787s, which will be distributed among six Chinese state-owned airlines. First deliveries are expected to commence in prior to the 2008 Summer Olympics in Peking.

Boeing 787 Comparison Chart with the Airbus A350
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