Boeing Co. would delay for as long as 18 months the delivery of its early-warning and control system aircraft to Australia, the company said.
The delay was caused by development and integration issues with hardware and software components, the company said in a statement.
Boeing said it expected to take a pretax charge of 300 million dollars to 500 million dollars related to the program, in which its 737-700 planes are outfitted with advanced radar systems. The program is known as Wedgetail in Australia and Peace Eagle in Turkey, another customer.
"This has been a very difficult technology program with an aggressive schedule," Chief Executive James McNerney said.
The delay prompted Australian Defense Minister Brendan Nelson to voice his disappointment and harshly criticized Boeing, the lead contractor on the project.
"I think Boeing has let the Australian government down, and I think they've let themselves down," Nelson saidg. He added that he intended to ensure "that Boeing delivers on the project."
Boeing is the U.S. No. 2 military contractor after Lockheed Martin Corp.
Source: Xinhua