Australia's new Chief of Air Force is Air Marshal Mel Hupfeld.

Air Marshal Hupfeld is moving from her role as Chief Joint Operations as current air force boss, Air Marshal Leo Davies, retires.

Air Marshal Davies will formally leave the role on July 3 after 40 years of military service.

Defence Minister Christopher Pyne said Air Marshal Davies is leaving the organisation in “very good nick”,

“[He] has established a record foundation for the way that the Air Force will operate in the future,” Mr Pyne told reporters.

One of Air Marshal Hupfeld’s biggest challenges will be the force's fifth generation of air combat planes - the F-35A Joint Strike Fighters.

The first of the new jets went into use last year, with a full fleet of 72 expected to be operational by 2023.

Development of the planes has been plagued by cost overruns and delays, and its now one of the world’s largest and most expensive military programs.

“That'll be a significant challenge, to bring those into full operation here in Australia,” Mr Pyne said.

Major General Greg Bilton will replace Air Marshal Hupfeld as Chief Joint Operations.