Australia will honor Boeing jet contract

CANBERRA, Australia -- Australia's government Monday withdrew its threat to cancel a $4.6 billion contract to buy 24 U.S.-manufactured Boeing F/A-18 Super Hornet fighters, after accusing the previous administration of entering the deal for political reasons.

Defense Minister Joel Fitzgibbon announced the sale would go ahead after a review by Australian officials of the plane's capability.

Fitzgibbon ordered the review after accusing the previous government of pushing the Defense Department into the deal last year for political rather than national security reasons.

But although the former government had not properly compared the Super Hornets with potential alternatives, Fitzgibbon found they were more than adequate.

"The new government is satisfied that the Super Hornet is an aircraft with significant capability and more than capable of meeting all of Australia's defense needs," Fitzgibbon told reporters.

The Super Hornets were chosen last year as a transitional aircraft that eventually will be replaced over the next decade by the Lockheed F-35 Lightning Joint Strike Fighter.

Fitzgibbon had said his government was prepared to pay penalties for canceling the contract if the review found a better alternative.