Minister for Defence - Jobs remain in Australia under Hornet contract

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Senator the Hon David Johnston

Minister for Defence

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28 February 2014

Defence Minister Senator David Johnston today announced a multi-million dollar contract extension for the maintenance of the Classic Hornet F404 engine.

The contract, valued at approximately $230 million was awarded to General Electric International Incorporated.

Senator Johnston said the extension followed an announcement by the Chief of Air Force to extend the Classic Hornet’s life out to 2022.

“After successful negotiations between GEII and the Defence Materiel Organisation, we have reached a mutual agreement on the price and requirements of the Classic Hornet contract extension, achieving savings of $36 million,” Senator Johnston said.

“In addition, the Australian component of the contract will continue to be subcontracted to TAE, creating continued employment for 90 personnel located at Williamtown, NSW, and Ipswich, Queensland.

“As the original equipment manufacturer of the Classic Hornet F404 and the Super Hornet F414 engines, GEII has held a contract with the DMO to provide sufficient engine maintenance and logistic support since 2008.”

At the time of the original contract the Planned Withdrawal Date for the Classic Hornet was June 2018, with the drawdown period commencing 1 July 2015.

The contract extension with GEII ensures engine capability is maintained through to the revised Classic Hornet Planned Withdrawal Date of 2022.

Media contacts:

Mark Dodd (Minister Johnston's Office) 0477 389 560

Rebecca Horton (Minister Johnston’s Office) 0477 389 554

Defence Media Operations (02) 6127 1999

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