Financial life in a big town

July 9, 2009

Boeing rolls out first for Australia

Filed under: legal — Tags: , — Silver @ 7:15 pm

The Boeing Co. on Wednesday rolled out the first of two dozen F/A-18 Super Hornets bound for the Royal Australian Air Force over the next three years.

While a shot in the arm for Boeing’s Integrated Defense Systems in St. Louis, the first international sale of its latest multi-role fighter jet occurs at a time of uncertainty for the St. Louis F/A-18 line. The Defense Department sought just 31 in next year’s budget — or nine fewer than expected.

Boeing and its supporters are pushing for another multi-year contract for the Super Hornets. Boeing officials say multi-year contracts with the U.S. Navy help hold down production costs and have saved taxpayers $1.7 billion so far.

Boeing said the first of the Super Hornets bound for the Royal Australian Air Force will be delivered ahead of schedule to the Navy, which will test it and then deliver it to Australia next spring.

Australia will pay $3 billion in U.S. dollars for the 24 aircraft, said Marcia Hart-Wise, a Department of Navy spokeswoman. That price includes service and support through 2020.

United States and Australian military leaders said the rollout of the F/A-18F was an important cooperative milestone between the two countries. The planes are equipped with the latest radar and weapons systems.

Boeing also is vying to provide F/A-18 Super Hornets to India, Denmark, Brazil, Greece and Japan.

Congress has added language supporting the U fast payday loans.S. purchase of more Super Hornets to proposed defense authorization bills.

Sen. Christopher "Kit" Bond, R-Mo., also went to bat for the purchase of more F/A-18s "as the most cost-effective, near-term means to address the Navy’s tactical fighter shortfall," and a multi-year contract, according to a June 22 letter he co-authored to the Senate Appropriations Committee. U.S. Sen. Claire McCaskill, D-Mo., said she also favors multi-year procurements in the future.

Boeing is the region’s second-largest employer and its F/A-18 fighter jet line employs 5,000 workers.

St. Louis Mayor Francis Slay trumpeted Boeing’s regional importance — from jobs to philanthropy — in remarks he made at Wednesday’s ceremony. Other speakers included Rear Adm. David Philman, director of air warfare for the U.S. Navy, and Air Marshal Mark Binskin, chief of the Royal Australian Air Force.

Despite the uncertainties, top Boeing officials remain upbeat about the future of aircraft manufacturing here.

"In case anybody’s wondering, we’re going to be building Super Hornets here for a long time to come," said Jim Albaugh, president and chief executive officer of Boeing’s Integrated Defense Systems.

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