This project has been delayed by around four years.
Acceptance of the two Wedgetail aircraft means ground and flight operations and maintenance of the aircraft are now fully under RAAF control.
Boeing delivered the two aircraft last year and has been supporting RAAF familiarisation training on the AEW&C system, which includes the aircraft as well as the Operational Flight Trainer, Operational Mission Simulator and Mission Support System.
Boeing will deliver three more Wedgetail aircraft to the RAAF by the end of this year, including one upgraded in the final AEW&C configuration with Electronic Support Measures.
All Wedgetail aircraft will be upgraded to the final configuration in early 2011.
Project Wedgetail includes six 737 AEW&C aircraft, plus ground support segments for mission crew training, mission support and system maintenance.
Combet on Wedgetail and the future
At the Wedgetail acceptance ceremony at RAAF Williamtown, Minister for Defence Personnel, Materiel and Science Greg Combet said that from his point of view, Wedgetail was in the top three projects of concern, up there with the Seasprite and the FFG Upgrade.
"It was a project where to some extent the contractors and Defence did not understand how grave the problems were.
"However, to everyone's credit, over the past couple of years there has been a renewed focus on cooperation, and considerable progress has been made.
"However we can not afford to rest on our laurels.
"A high level of commitment is required absolutely, if all the remaining project objectives are to be met.
"To this end, I look forward to seeing the remaining aircraft being progressively accepted over the coming year and the full operational capability being achieved at the earliest possible date.
"In particular, I look forward to the delivery of the Electronic Support Measures and Electronic Warfare Self Protection Subsystems and improvements in both radar performance and integrated system performance over time.
"I am confident that the Wedgetail, when full operational capability is achieved, will be amongst the best airborne early warning and control aircraft in the world.
"It will be a tremendous force multiplier for the ADF.
"We are interested in going beyond this - the MESA radar will be subject to a collaborative research and development program to examine potential improvements.
"This could provide real improvements in the radar and develop the radar expertise of Australian industry.
"As part of this, the Government is pleased to see the work being done to provide CEA Technologies, an innovative Australian radar company, with opportunities to play a major role in supporting the radar subsystem in service."