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Yahoo
12 hours ago
- Business
- Yahoo
Switzerland in talks with US as cost of F-35A fighter jets rises
By John Revill and Marleen Kaesebier ZURICH (Reuters) -Switzerland is holding talks with the United States after Washington tried to raise the price of new fighter jets Bern is buying for its air force, the government said on Wednesday. Bern chose Lockheed Martin's F-35A Lightning II as its next-generation fighter plane in 2021, with a fixed price of around 6 billion Swiss francs ($7.4 billion) for 36 jets, a decision that attracted controversy in neutral Switzerland. But the U.S. Joint Program Office overseeing the project said last year the price could be higher, and the U.S. Defense Security Cooperation Agency told Switzerland in February that the fixed price was a misunderstanding. Switzerland was informed the price for the F-35s would be dearer because of higher raw materials and energy costs, as well as higher U.S. inflation, with the sum potentially increasing by $650 million to $1.3 billion, the government said. "A contract is a contract," said Urs Loher, head of Swiss defence procurement agency Armasuisse. "With the procurement of the F-35A fighter aircraft, we're suddenly faced with a different reality, despite a clear fixed price." As the agreement prevents a legal settlement of the dispute, a diplomatic solution must be sought, the government said. Defence Minister Martin Pfister said talks were now under way with the U.S. authorities. "We still believe we'll find a solution with the U.S. authorities because they also have an interest in being perceived as a reliable contractual partner," Pfister said, while as a last resort Switzerland could cancel the deal. The decision to buy the F-35A was contested in Switzerland, with opponents arguing against replacing the country's aging F/A-18 jets with an unnecessary "Ferrari" option. Critics said Switzerland did not need cutting-edge warplanes to defend its territory, which a supersonic jet can cross in 10 minutes. The F-35A beat bids from Boeing's F/A-18 Super Hornet, the Rafale produced by France's Dassault and the four-nation Eurofighter built by Italy's Leonardo, Britain's BAE Systems and Airbus representing Germany and Spain. Still, Switzerland said it remained committed to the F-35A, and that cancelling the order would have serious consequences. "Switzerland would no longer be able to guarantee the safety of its airspace and population from 2032, as the current F/A-18 fighter aircraft would reach the end of their service life," Pfister said. ($1 = 0.8067 Swiss francs)
Straits Times
13 hours ago
- Business
- Straits Times
Switzerland seeks talks with US as cost of F-35A fighter jets rises
FILE PHOTO: A Lockheed Martin F-35A fighter jet performs during an exhibition flight at the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 16, 2025. REUTERS/Benoit Tessier/File Photo/File Photo Switzerland seeks talks with US as cost of F-35A fighter jets rises ZURICH - Switzerland is seeking talks with the United States, the government said on Wednesday, after Washington tried to raise the price for new fighter jets the neutral country is buying to upgrade its air defences. Bern chose Lockheed Martin's F-35A Lightning II as its next-generation fighter plane in 2021, with a fixed price of around 6 billion Swiss francs ($7.44 billion) for 36 jets, a decision that attracted controversy in Switzerland. But the U.S. Joint Program Office overseeing the project said last year that the price could be higher, while the U.S. Defense Security Cooperation Agency told Switzerland in February that the fixed price was a misunderstanding. Switzerland was informed that the price for the 36 F-35s would be dearer because of higher raw materials and energy costs, as well as higher inflation in the United States, the Swiss government said. It gave no concrete figures for the increased price now being sought, although Swiss broadcaster SRF said the United States could now charge up to 1.5 billion Swiss francs more, citing government sources. The Swiss government said the fixed price remained valid. As the agreement prevents a legal settlement of the dispute, "a diplomatic solution must be sought," it added. The decision to buy the F-35A was contested in Switzerland, with opponents arguing against replacing the country's aging F/A 18 jets with an unnecessary "Ferrari" option. Opponents said Switzerland did not need cutting-edge warplanes to defend its Alpine territory, which a supersonic jet can cross in 10 minutes. The F-35A beat bids from Boeing's F/A-18 Super Hornet, the Rafale produced by France's Dassault and the four-nation Eurofighter built by Italy's Leonardo, Britain's BAE Systems and Airbus representing Germany and Spain. Still, Switzerland said it remained committed to buying the F-35A, and that cancelling the contract would have "considerable consequences." "For example, Switzerland would no longer be able to guarantee the safety of its airspace and population from 2032, as the current F/A-18 fighter aircraft would reach the end of their service life," the government said. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
