Switzerland and the United States find themselves embroiled in a dispute concerning the final price of 36 Lockheed Martin F-35A fighter jets, a crucial acquisition for modernizing the Swiss Air Force. While Bern insists on the originally agreed-upon fixed price of just over six billion Swiss francs (approximately $7.5 billion), Washington’s Defense Security Cooperation Agency (DSCA) is demanding additional payments, citing inflationary pressures and surging raw material costs.
The DSCA informed Switzerland in February that the initial fixed price was a “misunderstanding,” though the exact additional financial burden remains unquantified. Bern, however, stands firm on the contractual agreement, which was publicly affirmed by the US embassy in Switzerland. National armaments director Urs Loher estimates that acceding to the DSCA’s new terms could add anywhere from $650 million to $1.3 billion to the total cost, a wide range attributed to potential US tariffs, ongoing inflation, and geopolitical uncertainties.
Switzerland’s purchase of these advanced jets is being conducted through the DSCA’s Foreign Military Sales program. As the disagreement unfolds, Bern is actively pursuing a diplomatic resolution, tasking its defense ministry with proposing a viable solution. The procurement of this new fleet itself has a contentious history within Switzerland, narrowly approved by a public referendum in September 2020. The F-35A was subsequently selected in June 2021, triumphing over formidable competitors such as the Airbus Eurofighter, Boeing’s F/A-18 Super Hornet, and Dassault’s Rafale.
Despite the contract being signed in September 2022, when the agreed sum equated to $6.2 billion, the escalating financial demands highlight the challenges of large-scale international defense procurements. Concerns about the F-35A’s cost and reported technical issues in the U.S. had already prompted an investigation by two Swiss parliamentary committees. However, terminating the contract now would carry severe consequences, potentially compromising Switzerland’s ability to guarantee airspace security from 2032, when its current F/A-18 jets are scheduled for retirement. The first F-35A deliveries are still anticipated in 2027, as Switzerland continues to uphold its long-standing policy of well-armed military neutrality.