Australia Signs Deal With Boeing

CANBERRA, Australia (AP) â€” The government will pay more than $1.1 billion to Boeing Co. for four surveillance aircraft, Defense Minister John Moore said Wednesday. <br><br>The government also has an

Wednesday, December 20th 2000, 12:00 am

By: News On 6

CANBERRA, Australia (AP) â€” The government will pay more than $1.1 billion to Boeing Co. for four surveillance aircraft, Defense Minister John Moore said Wednesday.

The government also has an option to buy a further three Airborne Early Warning and Control aircraft from Boeing at a later date.

A spokesman for the government wouldn't say exactly how much the government would pay for the Boeing Wedgetail aircraft, which are based on Boeing's 737-700 aircraft.

The first four aircraft will be assembled in the United States and the first two should be in service by 2007, Moore said in a statement.

A deal with Boeing to buy six Aewac aircraft was put on hold in August while the government reviewed its defense force capability.

The results of that review were released in early December and included a decision to go ahead with four Aewac aircraft.

The total cost of the project to the government, including training and other related development, comes to $1.6 billion, Moore said.

``The Aewac system is a strategically important capability that will make a major contribution to Australia's air combat capability, significantly multiplying the combat power of the upgraded F/A-18 fleet,'' he said.

In a statement, Boeing also welcomed the deal.

``The signing of this contract is a significant milestone for this project and for the 737 airplane as an Aewac platform,'' Boeing Space & Communications Group President Jim Albaugh said.

``This contract also firmly establishes a major new product line for Boeing Space and Communications,'' he said.