Bern, August 18 - Switzerland’s planned acquisition of 36 Lockheed Martin F-35A Lightning II fighter jets, intended to modernize its air force and replace aging F/A-18 Hornets and F-5 Tigers, has hit a significant roadblock as the United States has demanded additional payments, escalating costs beyond the original agreement. In 2021, Switzerland selected the F-35A over competitors like the Eurofighter Typhoon, Dassault Rafale, and Boeing F/A-18 Super Hornet, citing its advanced stealth capabilities, sensor fusion, and cost-effectiveness at an estimated 6.035 billion Swiss francs (approximately USD 6.2 billion at the time). The deal, formalized in 2022 through the U.S. Foreign Military Sales (FMS) program, was initially described as a fixed-price contract, a critical factor for Switzerland’s budget-conscious government, which secured public approval for the procurement through a narrow referendum in 2020. However, recent negotiations have revealed that the U.S. government is unwilling to honor the fixed-price commitment, citing rising production costs due to inflation, increased raw material prices, and energy costs. Swiss estimates now project additional costs ranging from 650 million to 1.3 billion Swiss francs ($750 million to USD 1.6 billion), creating uncertainty about the program’s future.
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The Swiss Federal Council, while reaffirming its commitment to the F-35’s technological advantages, has instructed the Department of Defense, Civil Protection, and Sport (DDPS) to reassess the procurement by November 2025. Defense Minister Martin Pfister has acknowledged that the U.S. stance, solidified in discussions with U.S. Secretary of Defense Pete Hegseth, leaves Switzerland with limited leverage. The FMS framework allows the U.S. to adjust prices based on production batch costs negotiated with Lockheed Martin, undermining Switzerland’s expectation of a stable price. Legal opinions commissioned by Switzerland, including from Zurich-based Homburger and U.S.-based Arnold & Porter, argue that the contract should enforce a fixed price, but U.S. officials have dismissed these interpretations. The DDPS, led by future Air Force Commander Maj. Gen. Christian Oppliger is now tasked with evaluating whether the original air defense requirements, outlined in the 2017 “Air Defense of the Future” report, still align with current financial and security realities. Options under consideration include reducing the order size, seeking additional parliamentary funding, or leveraging Swiss industry offsets to mitigate costs.
The escalating costs have reignited domestic political tensions, as the F-35 procurement was already contentious, passing the 2020 referendum by a mere 50.1% margin. Critics, particularly from left-leaning parties, argue that the funds could be better allocated to other defense or civilian priorities, especially amid U.S.-imposed 39% tariffs on Swiss exports like watches and coffee capsules, which have strained bilateral relations. These tariffs, while not directly tied to the F-35 deal, have fueled calls from some lawmakers to reconsider the purchase entirely or shift toward European defense alternatives. Supporters of the F-35 emphasize its unmatched capabilities and interoperability with other European air forces, many of which also operate the jet. Canceling the contract is seen as risky, as it could leave Switzerland without adequate air defense by the early 2030s, when its current fleet is set to retire. Switching to another aircraft type would likely incur even higher costs and delays, making it an unappealing option.
Switzerland’s predicament reflects broader challenges in the global F-35 program, where cost overruns and production complexities have strained budgets for several partner nations. The Swiss government remains committed to the jet’s strategic value but faces a delicate balancing act between financial constraints, public sentiment, and defense needs. By November 2025, the DDPS’s recommendations will determine whether Switzerland maintains its full order, scales it back, or explores other cost-saving measures. The outcome will not only shape Switzerland’s air defense strategy but also signal the strength of its defense partnership with the U.S. amid growing economic and political frictions. For now, the government is navigating a complex landscape, striving to secure a modern air force while managing an unexpectedly costly procurement process.
