AEW&C Contract Signed

"The AEW&C system will form the cornerstone of Australia’s air and maritime surveillance, and early warning and detection capability, well into this century," Mr Moore said. "Accurate and timely surveillance is essential to Australia, regardless of the type of future operation Australian forces may be required to participate in.

"The finalisation of this contract for the AEW&C capability is a significant move by Defence to begin implementation of the Defence Capability Plan (DCP). It is the first of the major acquisitions detailed in the recently released Defence White Paper, in which the Federal Government committed to a multi-billion dollar boost to Defence capability in Australia over the next decade."

Four AEW&C aircraft have been ordered with an option for another three. Total value of the project is $3 billion. The in-service date for the first two aircraft will be 2007.

"The DCP has been carefully formulated to provide the Defence Force with clear, long-term goals for the development of our armed forces and the funding needed to achieve those goals. Defence must now rise to the task of implementing this plan," Mr Moore said.

"The AEW&C 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.

"The system will improve command and control, and the capacity for air defence of surface ships. It also will enhance Australia’s strike capability.

"Importantly it will also provide support to Coastwatch activities, as it will be capable of covering four million square kilometres during a single 10 hour mission – that’s the equivalent of Darwin to Perth and back again."

The AEW&C platform is based on Boeing’s highly successful 737 aircraft, the biggest-selling aircraft in the world. Australian industry will be participating in the project, contributing work to the value of around $400 million.

A further $800 million in strategic industry development activities is also possible. These include training and skills transfer, collaborative ventures, defence infrastructure development, research and development projects, and export sales.

Mr Moore said he was pleased to also announce today that Air Commodore Norm Gray has been appointed Head, Airborne Early Warning and Control Project (HAEW&C), and promoted to Air Vice Marshal.

The AEW&C fleet will be based at RAAF Base Williamtown in New South Wales, with a detachment operating from RAAF Base Tindal in the Northern Territory.