From
The Australian
BOEING will pay the Australian government tens of millions of dollars in compensation in a final commercial settlement over the late delivery of the RAAF's $4 billion airborne early warning aircraft. After months of bruising negotiations, the two parties agreed last week on a deal that will see Boeing pay the commonwealth both a cash settlement and provide further technical help at no cost to the troubled Wedgetail project.
A spokesman for DefenceMinister John Faulkner yesterday declined to reveal the exact sum paid by Boeing in liquidated damages to the commonwealth for failing to meet the delivery timetable and the agreed performance specification for the Wedgetail's complex systems, including its highly advanced phased array radar.
But it is understood the payment is about $100 million, making it one of the largest liquidated damages payouts involving a Defence Department contract.
Boeing has also spent an estimated $US1.7 billion ($1.9bn) of its own funds trying to fix the glitches in Wedgetail over and above its fixed-price $4bn contract with Defence, but they are already running four years late following a string of developmental problems.
Boeing have just been burnt over the fixed price contract for Wedgetail, so I guess it is highly unlikely that they will enter into another fixed price contract for development of a new aircraft.
Boeing are hopeful of more customers for their B737 AEW&C, but can they expect that anyone other than the USAF will order their 767 tanker?
Boeing Wedgetail Aircraft Accepted Into Royal Australian Air Force 
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