Australia has awarded a contract extension of A$230 million ($205 million) to General Electric for continued support of the F404 engines that power its Boeing F/A-18 Hornet fighters.

“After successful negotiations between GEII (General Electric International Incorporate) and the Defence Materiel Organisation, we have reached a mutual agreement on the price and requirements of the Classic Hornet contract extension, achieving savings of $36 million,” says defence minister David Johnston.

“In addition, the Australian component of the contract will continue to be subcontracted to TAE (Tasman Aviation Enterprises), creating continued employment for 90 personnel located at Williamtown, NSW, and Ipswich, Queensland.”

The deal ensures that the F/A-18s engine requirements will be maintained through the type’s planned withdrawal date of 2022.