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6d ago

Switzerland Launches F-35 Procurement Review After Fixed-Price Talks Collapse

Bern remains committed to the 36-jet purchase despite cost risks from inflation and U.S. tariffs, with the DDPS ordered to reassess air-defence needs by November.

An F-35A Lockheed Martin fighter jet prepares to land on a motorway, in Tervo, Finland September 21, 2023. NTB/Ole Andreas Vekve via REUTERS/File Photo
File photo of a U.S. Air Force F-35 during the Air2030 evaluation in Switzerland. (Image credit: Armasuisse)
The F-35 Lightning II Joint Strike Fighter, a fifth-gen fighter facing new challenges.
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Overview

  • The Federal Council confirmed it will proceed with 36 F-35A fighters even without a fixed-price contract.
  • Price uncertainty now exposes Switzerland to an additional CHF 650 million to 1.3 billion in potential overruns.
  • U.S. tariff increases and global commodity and inflation trends are key drivers of the cost risks.
  • Defence Minister Martin Pfister signalled that the government may reduce the number of jets if budget pressures persist.
  • A DDPS working group led by Major General Christian Oppliger must validate prior air-defence assumptions and propose next steps by late November.