Boeing to provide Wedgetail support

"This contract will create more than 100 industry jobs in the Newcastle area.

"It will also provide continued and new employment for more than 100 personnel at Amberley over the next 12 months, which will have positive flow-on effects for local businesses," Combet said.

"The five-year performance-based contract is valued at $800 million and provides a comprehensive support arrangement.

"The contract links contractor profits directly to contractor performance, thereby promoting greater efficiency and delivering real cost savings."

The Boeing Company will be supported by Boeing Defence Australia on maintenance, engineering and training.

Northrop Grumman Corporation will provide support for their Multi-Role Electronically Scanned radar.

"As part of the contract, the industry team will deliver services including logistics, training, spares management, aircraft deeper maintenance, engineering and supply chain management," Combet said.

The Wedgetail aircraft are being delivered progressively to RAAF Base Williamtown, with Defence acknowledging that the craft are currently only 95 per cent capable.

The contract will allow for the necessary infrastructure to be developed for the support of the Wedgetail Aircraft when they are formally accepted by the Commonwealth.