US Raises the Bill, Claims That F-35 Production Costs Have Shot Up

The Swiss government may be re-thinking its F-35 deal with the US after the supposedly ‘fixed-price’ sale was upped by nearly $1.6 billion. The US has repeatedly denied claims that it locked in a price, arguing that more expensive material and energy costs couldn’t be ignored.

Swiss defense officials have been in talks with Washington for months, but the US has refused to budge. Even a discussion between Defense Minister Martin Pfister and U.S. Secretary of Defense Pete Hegseth led nowhere. The government isn’t ready to drop the deal altogether, though, just asking the defense ministry to examine “options” for the acquisition.

One leading option is simply to buy fewer aircraft. Another is negotiating offset deals with Lockheed Martin to soften the blow. A working group led by incoming Air Force Commander Maj. Gen. Christian Oppliger will spend the next few months “reassessing” the plan. Legal firms hired by Switzerland aren’t offering much help, with many claiming the US is bound to the original price.

The issue is separate from the current US tariffs on Swiss goods, though critics are happy to lump everything together. These tensions have led some to favor scrapping the F-35 program entirely, appealing to those who never wanted the jets in the first place. But canceling the contract would leave Switzerland without modern fighters after 2032, when its F/A-18 Hornets retire. Its older F-5 Tigers are already scheduled to be gone by 2027, so without new aircraft, Swiss airspace security would fly on hopes and dreams.

The F-35 was originally chosen after outscoring the Dassault Rafale, Eurofighter Typhoon, and Boeing’s Super Hornet in Switzerland’s evaluation process. Despite the glowing review, even the US in a Government Accountability Office (GAO) study determined that six years and over $12 billion in investments have failed to get the F-35 Lightning combat-ready. Spain also recently suspended talks with the US for F-35 acquisitions in favor of supporting European defense programs.

FMI: www.lockheedmartin.com