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Qatar Tribune
25-06-2025
- Business
- Qatar Tribune
Switzerland and US dispute cost of controversial fighter jet deal
GenevacTypeface:> Switzerland and the United States are at odds over the price of 36 US-made F-35 fighter jets, with Washington now seeking a significantly higher payment than originally expected. The Swiss government maintains the aircraft were purchased at a fixed price of some 6 billion Swiss francs ($7.5 billion). However, the US Defense Security Cooperation Agency (DSCA) now claims the fixed price was a misunderstanding and is demanding an additional $650 million to $1.3 billion, Swiss armaments chief Urs Loher said. The 2022 order stirred controversy in Switzerland and across Europe, in part because Switzerland chose the US-made jets over European alternatives like the Eurofighter and the French Rafale. Then-defence minister Viola Amherd defended the decision, stating the F-35 was the most cost-effective option. (DPA)
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First Post
25-06-2025
- Business
- First Post
Switzerland in talks with US after F-35 fighter jet price dispute threatens $7.4 billion deal
Switzerland was informed the price for the F-35s would be dearer because of higher raw materials and energy costs, as well as higher US inflation, with the sum potentially increasing by $650 million to $1.3 billion, the government said read more 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, on June 16, 2025. Reuters File 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 US Joint Program Office overseeing the project said last year the price could be higher, and the US Defence Security Cooperation Agency told Switzerland in February that the fixed price was a misunderstanding. STORY CONTINUES BELOW THIS AD Switzerland was informed the price for the F-35s would be dearer because of higher raw materials and energy costs, as well as higher US 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. STORY CONTINUES BELOW THIS AD 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.


Mint
25-06-2025
- Business
- Mint
Swiss Admit Spat With US on Fighter Jet Price, Still Want F-35A
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 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. This article was generated from an automated news agency feed without modifications to text.


Bloomberg
05-06-2025
- Business
- Bloomberg
Swiss Arms Chief Seeks Closer European Ties for Defense Race
Switzerland's most senior arms procurement official is seeking closer collaboration with European neighbors, as global demand for weapons surges and the nation's own defense industry falters. Russia's full-scale invasion of Ukraine and concern over US President Donald Trump's commitment to NATO's mutual defense clause is forcing Europe to rearm, pushing weapons firms to their capacity limits. That's making it more challenging for small countries like Switzerland to place orders, said Urs Loher, director of Armasuisse, the government agency responsible for Swiss army procurement.