Boeing tops Australian defence contract league

Peter La Franchi/CANBERRA

Aerospace acquisitions have dominated the top three Australian Department of Defence supplier positions over the last six years, followed by warship programmes, according to official statistics obtained by Flight International. The Australian DoD has not released data on suppliers since 1995, but the rankings are revealed within 'whole of government' contracting statistics.

Boeing is certain to rank number one in the 2000-01 financial year ending 30 June, having already secured new sales worth around A$2.34 billion ($1.23 billion) - the most accrued by a single supplier since 1989 - led by the recent A$2.30 billion contract for four Boeing 737 airborne early warning and control aircraft.

Boeing contracts total A$2.32 billion, including a A$14.25 million downpayment on two Boeing Business Jets for the Royal Australian Air Force's VIP aircraft replacement programme, augmented by contracts won by Boeing Australia (A$14.49 million) and Aerospace Technologies of Australia.

Boeing will remain number one in 2001-02 if it secures the Australian Army's Project Air87 armed reconnaissance helicopter requirement - cost-capped at A$1.2 billion. It is competing with Bell Helicopter Textron and Eurocopter, with selection due this year.

Cable and Wireless Optus was top defence supplier in 1999/2000, with sales of A$739.74 million led by contracts to redevelop the Australian Defence Force's satellite communications infrastructure. Optus' contracts for the first six months of 2000-01 total A$3.42 million, including satellite links to support deployment of the Northrop Grumman RQ-4 Global Hawk.

ADI ranked number one in 1998/99, with sales worth A$A1.38 billion, principally for upgrading Royal Australian Navy warships, while BAE Systems (then British Aerospace) topped the league in 1997/98 after securing a contract for Hawk lead-in fighters.

Source: Flight International