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Govt set to buy two Wedgetails

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Govt set to buy two Wedgetails

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Old 8th May 2004, 01:30
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Evertonian
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Govt set to buy two Wedgetails

05:55 AEST Sat May 8 2004


The federal government is tipped to buy two additional airborne early warning aircraft as the centrepiece of defence spending in Tuesday's Budget.

That would involve exercising an option to buy two extra Boeing 737 aircraft at a price of just $120 million each, compared with $900 million each for the other four.

Under what's called Project Wedgetail, the RAAF will acquire four Boeing 737 aircraft fitted with an advanced airborne radar and communications system at a cost of $3.43 billion. The first aircraft is expected to enter service in 2006.

But the project's advanced technology meant there was inherent risk of cost blowouts and delays, and for that reason the government initially decided to buy four aircraft with an option for two more.

However, the original contract did include six complete radar sets.

The project is now running on time and within budget.

In an article earlier this year, Hugh White, director of the Australian Strategic Policy Institute (ASPI), said buying the two extra aircraft was simply too good a deal to ignore.

He said the seven per cent extra funding would produce a 50 per cent increase in airborne early warning capability.

"With numbers like that it is hard to see how the government could decide not to buy the two extra aircraft," he said.

Defence spending in last year's Budget hit $15.8 billion while spending this year is expected to exceed $15.9 billion.

As already outlined in pre-budget announcements, defence can already expect some extra money, particularly in the area of intelligence.

Prime Minister John Howard said defence would receive an extra $47.4 million to enhance intelligence operations' analytical capacity. But he gave out no extra details.

The Defence Capability Plan 2004-2014 gives other indications about where defence will invest in new equipment and capabilities.

High on the list will be the RAAF's bomb improvement program, an essential step if the F/A-18 Hornets are to supercede the F-111 strike bombers early next decade.

This will involve fitting conventional freefall bombs with GPS guidance kits to create precision munitions of the type used extensively by US forces in Afghanistan and Iraq.



So, now we cancel the original order & just get the 2 737's for$120million? BARGAIN!
Buster Hyman is offline  

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