Swiss Admit Spat With US on Fighter Jet Price, Still Want F-35A
(Bloomberg) — Switzerland and the US are at odds on the agreed price for three dozen F-35A fighter jets the country wants to buy from Lockheed Martin Corp., adding to existing tensions over US tariffs.
The Swiss government said Wednesday that a price was set in the purchase deal, but that US officials have now said that this is a “misunderstanding” and the planes will cost more.
“A contract is a contract, one should think,” National Armaments Director Urs Loher told reporters in Bern. “But with respect to the purchase of the F-35A, we are now facing a different reality. Despite a set price, Switzerland is confronted” with as much as $1.3 billion of additional costs, he said.
Switzerland didn’t procure the fighter jets directly from Lockheed Martin, but via the US government, which is responsible for negotiating prices for the next production lines. The two countries have now started diplomatic talks to resolve the issue, Defense Minister Martin Pfister said.
The Defense Ministry plan sees the acquisition of 36 planes for 6 billion francs ($7.5 billion) to replace old jets in the Swiss air force. In 2020, Swiss voters very narrowly approved the purchase with the price capped at that amount.
A report by public broadcaster SRF that costs will increase by more than 1 billion francs has previously stoked calls for a new debate in parliament or even another plebiscite. The purchase is also under attack due to the shift in US foreign policy, with left-wing politicians pushing for Switzerland to opt for a European supplier instead.
According to the statement, Switzerland is sticking with its plan to buy the F-35A and is aiming for a “diplomatic solution.”
“From a military point of view, buying the F-35A is imperative,” Loher said. “Withdrawing from the contract would only be considered as a very, very last resort.”
The deal isn’t part of current trade talks with the US, Swiss President and Finance Minister Karin Keller-Sutter told reporters in Bern.
(Updates with comment from armament chief in third paragraph)
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