ST. LOUIS, May 12, 2004 -- The Commonwealth of Australia has exercised options to purchase two additional Boeing [NYSE: BA] 737-700 aircraft for Project Wedgetail, an airborne early warning and control (AEW&C) program.
The value of the options is approximately $180 million.
The options are part of the $1 billion-plus contract Boeing signed with the Commonwealth in 2000 for four 737-700 aircraft and six AEW&C systems. The agreement also provides for ground-based support segments for flight and mission crew training, a mission support segment, other support facilities and spare parts.
"By exercising the options, the Australian government is showing confidence in the Wedgetail program and Boeing's ability to meet the requirements of our customer and deliver this powerful capability," said Patrick Gill, Boeing vice president of 737 AEW&C programs. "It also validates our ahead of schedule and on-budget performance."
Delivery of the first two 737 AEW&C aircraft to the Royal Australian Air Force is scheduled for 2006. The other four aircraft will be delivered by 2008.
The 737-700 features 21st century avionics, navigation equipment, and flight deck. Because of its high technology, the aircraft requires minimal downtime for maintenance. The 737 series is one of the most popular and reliable jet aircraft in the world, resulting in a worldwide base of suppliers, parts and support equipment.
The 737 AEW&C system is equipped with Northrop Grumman's Multi-role Electronically Scanned array antenna with integrated identification friend or foe capabilities. The system also includes a flexible-open architecture for cost-effective future upgrades, an extensive communications suite, aerial refueling capability and an electronic warfare self-protection subsystem.
Headquartered in St. Louis, Boeing Integrated Defense Systems is a $27 billion business that provides systems solutions to its global military, government and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in launch services.
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