The contract is a key component of Boeing's participation in the Australian government’s Global Supply Chain Program, which aims to enhance collaboration with local suppliers and strengthen the Australian defence industry.
The Regional Airfare Zone Cap scheme, which has flown more than 500,000 discounted airfares, was earlier this year extended into June 2026. Its potential expiry has sparked anxiety over possible huge jumps in fares, as reported by the ABC, but WA Transport Minister Rita Saffioti has said it will be renewed.
The planemaker saw a net loss of over US$5.3 billion for the third quarter of 2025, driven largely by its Commercial Airplanes division, which includes the 737, 777, and 787 programs. Boeing in October reached an agreement with the FAA to increase 737 production from 38 to 42 per month.
Reflecting the government's stated commitment to deliver a “modern, fair, and resilient aviation sector”, Transport Minister Catherine King, speaking at the event, said it is important for the government to work with the opposition to provide all Australians with a reliable, efficient aviation industry.
The federal government has released the terms of reference for the review, which was flagged by Transport Minister Catherine King earlier this year and will examine the key factors driving high costs on regional routes.
Airport growth meant outgrowing legacy systems Hobart Airport, Tasmania’s primary aviation gateway, manages more than 2.8 million passengers annually across domestic, international, and Antarctic operations. With significant investment and growth underway, a completed airfield upgrade and a terminal expansion set to add gates and carousels, the airport needed a scalable, configurable approach to compliance and