WEDGETAIL PROJECT

I have met with Boeing senior management in Washington, D.C., to discuss the timeframe for the delivery of the Wedgetail Airborne Early Warning and Control aircraft. I was joined in the discussions by Lieutenant General David Hurley, Chief Capability Development Group.

During our talks, Boeing CEO Jim Albaugh confirmed the Wedgetail project has slipped behind schedule. Until recently, Boeing was advising that this project had been running well and achieving significant success for one of such complexity.

I made it clear to Mr Albaugh that the Government is very disappointed the project will not be delivered on schedule. The extent of the delay will be determined by intense project reviews over the next two months.

I have asked Boeing to ensure all necessary personnel and resources are furnished to the project and to provide a validated and revised schedule for the project.

Boeing has accepted responsibility for this situation. I have also received a full commitment by the company that it will do whatever is necessary to bring this project to a successful conclusion.

I welcome the appointment of Maureen Dougherty, Boeing’s new project manager. Ms Dougherty has an excellent track record in managing major aircraft projects including the F22 Raptor for the United States Air Force.

The contract between the ADF and Boeing does include a provision for liquidated damages. The government is reserving its contractual rights in this regard.

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