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Monday, December 31, 2007

Australia May Cancel A$6.6 Billion Fighter Order, Herald Says

Australia may cancel its agreement to spend A$6.6 billion ($5.8 billion) on 24 fighter aircraft made by Boeing Co., the Sydney Morning Herald reported.

The government may cancel the contract at a cost of about A$300 million or try to renegotiate its terms and the number of F/A-18 Super Hornet fighter-bombers it buys, the Herald said, without saying where it got the information.

Department of Defence planners have been asked by the government to assess all fighter jet options in its A$30 billion air combat program and how they compare to likely adversaries, the newspaper said.

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