Switzerland officially questions F-35A procurement after negotiations with US end without financial agreement
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On August 13, 2025, the Swiss Federal Council announced that negotiations with the United States over the fixed price of the F-35A procurement had ended without agreement. After weeks of diplomatic discussions, including direct talks between Defence Minister Martin Pfister and US Secretary of Defense Pete Hegseth, Washington confirmed that it would not deviate from the Foreign Military Sales framework, which sets prices per production lot negotiated between the US government and Lockheed Martin.Follow Army Recognition on Google News at this link
The Federal Council stated that it remains committed to acquiring the F-35A, describing the aircraft as providing technological advantages and interoperability with European operators. However, it also recognized the need to revalidate whether the assumptions underlying the 2017 “Air Defence of the Future” report remain applicable. (Picture source: Swiss MoD)
The Swiss Council therefore accepted that no fixed price can be secured, and it instructed the Federal Department of Defence, Civil Protection and Sport (DDPS) to examine alternative courses of action in depth by the end of November. Options will be evaluated against the objectives of the Air2030 program, which was narrowly approved by voters in a 2020 referendum and has been subject to debate since the selection of the F-35A fighter jet in 2021. The financial impact of the failed negotiations is significant. The original contract for 36 F-35A aircraft, signed in September 2022, was valued at CHF 6.035 billion ($7.48 billion), which Swiss authorities presented as a fixed price at the time. However, the US clarified that overall procurement costs are not guaranteed under the FMS system. As a result, Switzerland must now factor in price increases driven by inflation in the United States, higher global commodity prices, and US tariff policies. Estimates provided in June indicated possible additional costs between CHF 650 million ($806 million) and CHF 1.3 billion ($1.61 billion), which would raise the total procurement to over CHF 7 billion ($8.68 billion). US tariffs imposed at the end of July by the Trump administration, which targeted Swiss exports with a 39 percent rate, more than double the tariff applied to the European Union, have further amplified concerns about the affordability of the program.
The Federal Council stated that it remains committed to acquiring the F-35A, describing the aircraft as providing technological advantages and interoperability with European operators. However, it also recognized the need to revalidate whether the assumptions underlying the 2017 “Air Defence of the Future” report remain applicable. For this purpose, the DDPS has established a working group under Major General Christian Oppliger, who is set to become commander of the Swiss Air Force. The group will critically examine the security environment, financial constraints, and technical requirements to determine whether the planned fleet size and configuration are still appropriate. The government confirmed that its analysis will include options such as reducing the number of aircraft, negotiating offset arrangements with Lockheed Martin, or requesting supplementary credit from parliament, either individually or in combination.
The decision to continue with the F-35A has triggered renewed political controversy. The initial referendum of September 2020 passed by a margin of only 8,670 votes, or 50.1 percent of the electorate, and opposition parties remain divided on the issue. The Greens and Social Democrats have filed motions in parliament demanding that the procurement be halted or reconsidered, citing US unreliability and advocating a shift to European alternatives. Liberal voices, including those from the party of President Karin Keller-Sutter, have called for a pause in US payment tranches until the cost issue is resolved, while others have argued that withdrawing from the deal could jeopardize Switzerland’s ability to defend its airspace once its F/A-18 Hornets retire in 2032. Defence Minister Pfister reiterated in his press conference that terminating the contract would leave Switzerland without an independent air policing capacity and could expose the country to higher costs and delays if it sought alternative aircraft.
Concerns have also emerged about the scope of the equipment package included in the contract. Reports in Swiss media indicated that some aircraft would be delivered with minimal weaponry, requiring additional purchases of bombs and medium-range missiles. In some cases, only a single short-range Sidewinder missile per aircraft is included, and roughly a third of the fleet may lack bombs at delivery. This contrasts with government statements that the 6 billion franc ($7.44 billion) package includes mission equipment, weapons, and munitions. Critics argue that full operational capability will demand further spending of several hundred million francs beyond the announced procurement cost. The Federal Council responded by commissioning legal reviews from Swiss and US law firms, which confirmed that while some elements of the contract were fixed at specific stages, ultimate costs are determined by US government pricing under FMS rules.
The legal and financial disputes have sharpened scrutiny of Switzerland’s procurement practices. The Federal Audit Office had already warned in 2022 that a fixed price was legally uncertain, but those warnings were dismissed at the time by Defence Minister Viola Amherd, who resigned in March 2025. The publication of legal assessments now shows that guarantees of stability in operating costs were not included, and that lifecycle costs, estimated at CHF 15.5 billion ($19.22 billion) over 30 years, remain subject to US determinations. Parliamentary discussions in September will revisit whether additional credits require public approval, and the Social Democrats and Greens have signaled possible legal action regarding the original referendum. Meanwhile, Switzerland has already paid CHF 700 million ($868 million) to the US under the credit arrangement and is scheduled to transfer another CHF 300 million ($372 million) this year, commitments that complicate any withdrawal scenario.
The controversy places Switzerland in a broader European context where several countries are reconsidering their F-35 plans. Spain confirmed earlier in August that it will not acquire the American jet, citing budgetary priorities and a preference for the Eurofighter and the Future Combat Air System program. Madrid’s decision could end its fixed-wing carrier aviation capability and leave its air force reliant on a single combat type, a move criticized by Washington. Portugal has also expressed doubts about the aircraft, while Canada, despite earlier hesitation, is continuing its procurement. In contrast, Denmark and other operators have signaled interest in expanding their fleets. Switzerland’s case highlights the challenges of balancing cost, sovereignty, and interoperability in European defense procurement, and the Federal Council’s November decision will determine whether the Alpine country proceeds with the full order, reduces the fleet, or adopts compensatory measures to manage rising costs.
It is worth remembering that, on June 30, 2024, Switzerland’s RUAG received pre-approval from armasuisse for the RIGI project, which will allow the company to assemble and test four of the country’s 36 F-35A fighter jets with Lockheed Martin’s technical support. The initiative is classified as a technology and knowledge transfer program, rather than a full production effort, and is valued at nearly 500 million CHF ($556 million). RUAG’s involvement is intended to build expertise in the F-35 platform early on, secure its role in the European support network, and generate high-tech jobs, with 40 percent of the required personnel for the project to be sourced from western Switzerland. The project forms part of the offset obligations tied to the procurement contract signed on September 19, 2022, under which Lockheed Martin committed to offset 60 percent of the $3 billion contract value with Swiss industry. Deliveries of all 36 aircraft are scheduled between 2027 and 2030, with assembly in Switzerland and final acceptance of the four RUAG-produced jets in Cameri, Italy.
The aircraft will replace Switzerland’s aging F/A-18 Hornets and F-5 Tigers and will be stationed at Payerne, Emmen, and Meiringen to provide full national coverage. The first Swiss F-35As will feature TR-3 hardware and Block 4 software, placing them on par with other European operators expected to field nearly 500 F-35s by 2030. As RUAG builds capacity as a Material Competence Center for the Swiss Air Force, the program is expected to sustain existing jobs and create new ones while expanding Switzerland’s autonomy in maintenance and support. The F-35A, a fifth-generation stealth multirole fighter powered by the Pratt & Whitney F135 engine, combines stealth technology, advanced avionics, and versatile weapons capability, enabling both air-to-air and air-to-ground operations. With features such as the Distributed Aperture System, Electro-Optical Targeting System, and helmet-mounted display, the aircraft enhances situational awareness, while its armament includes a 25mm cannon, air-to-air missiles, precision bombs, and long-range standoff weapons.
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On August 13, 2025, the Swiss Federal Council announced that negotiations with the United States over the fixed price of the F-35A procurement had ended without agreement. After weeks of diplomatic discussions, including direct talks between Defence Minister Martin Pfister and US Secretary of Defense Pete Hegseth, Washington confirmed that it would not deviate from the Foreign Military Sales framework, which sets prices per production lot negotiated between the US government and Lockheed Martin.
Follow Army Recognition on Google News at this link
The Federal Council stated that it remains committed to acquiring the F-35A, describing the aircraft as providing technological advantages and interoperability with European operators. However, it also recognized the need to revalidate whether the assumptions underlying the 2017 “Air Defence of the Future” report remain applicable. (Picture source: Swiss MoD)
The Swiss Council therefore accepted that no fixed price can be secured, and it instructed the Federal Department of Defence, Civil Protection and Sport (DDPS) to examine alternative courses of action in depth by the end of November. Options will be evaluated against the objectives of the Air2030 program, which was narrowly approved by voters in a 2020 referendum and has been subject to debate since the selection of the F-35A fighter jet in 2021. The financial impact of the failed negotiations is significant. The original contract for 36 F-35A aircraft, signed in September 2022, was valued at CHF 6.035 billion ($7.48 billion), which Swiss authorities presented as a fixed price at the time. However, the US clarified that overall procurement costs are not guaranteed under the FMS system. As a result, Switzerland must now factor in price increases driven by inflation in the United States, higher global commodity prices, and US tariff policies. Estimates provided in June indicated possible additional costs between CHF 650 million ($806 million) and CHF 1.3 billion ($1.61 billion), which would raise the total procurement to over CHF 7 billion ($8.68 billion). US tariffs imposed at the end of July by the Trump administration, which targeted Swiss exports with a 39 percent rate, more than double the tariff applied to the European Union, have further amplified concerns about the affordability of the program.
The Federal Council stated that it remains committed to acquiring the F-35A, describing the aircraft as providing technological advantages and interoperability with European operators. However, it also recognized the need to revalidate whether the assumptions underlying the 2017 “Air Defence of the Future” report remain applicable. For this purpose, the DDPS has established a working group under Major General Christian Oppliger, who is set to become commander of the Swiss Air Force. The group will critically examine the security environment, financial constraints, and technical requirements to determine whether the planned fleet size and configuration are still appropriate. The government confirmed that its analysis will include options such as reducing the number of aircraft, negotiating offset arrangements with Lockheed Martin, or requesting supplementary credit from parliament, either individually or in combination.
The decision to continue with the F-35A has triggered renewed political controversy. The initial referendum of September 2020 passed by a margin of only 8,670 votes, or 50.1 percent of the electorate, and opposition parties remain divided on the issue. The Greens and Social Democrats have filed motions in parliament demanding that the procurement be halted or reconsidered, citing US unreliability and advocating a shift to European alternatives. Liberal voices, including those from the party of President Karin Keller-Sutter, have called for a pause in US payment tranches until the cost issue is resolved, while others have argued that withdrawing from the deal could jeopardize Switzerland’s ability to defend its airspace once its F/A-18 Hornets retire in 2032. Defence Minister Pfister reiterated in his press conference that terminating the contract would leave Switzerland without an independent air policing capacity and could expose the country to higher costs and delays if it sought alternative aircraft.
Concerns have also emerged about the scope of the equipment package included in the contract. Reports in Swiss media indicated that some aircraft would be delivered with minimal weaponry, requiring additional purchases of bombs and medium-range missiles. In some cases, only a single short-range Sidewinder missile per aircraft is included, and roughly a third of the fleet may lack bombs at delivery. This contrasts with government statements that the 6 billion franc ($7.44 billion) package includes mission equipment, weapons, and munitions. Critics argue that full operational capability will demand further spending of several hundred million francs beyond the announced procurement cost. The Federal Council responded by commissioning legal reviews from Swiss and US law firms, which confirmed that while some elements of the contract were fixed at specific stages, ultimate costs are determined by US government pricing under FMS rules.
The legal and financial disputes have sharpened scrutiny of Switzerland’s procurement practices. The Federal Audit Office had already warned in 2022 that a fixed price was legally uncertain, but those warnings were dismissed at the time by Defence Minister Viola Amherd, who resigned in March 2025. The publication of legal assessments now shows that guarantees of stability in operating costs were not included, and that lifecycle costs, estimated at CHF 15.5 billion ($19.22 billion) over 30 years, remain subject to US determinations. Parliamentary discussions in September will revisit whether additional credits require public approval, and the Social Democrats and Greens have signaled possible legal action regarding the original referendum. Meanwhile, Switzerland has already paid CHF 700 million ($868 million) to the US under the credit arrangement and is scheduled to transfer another CHF 300 million ($372 million) this year, commitments that complicate any withdrawal scenario.
The controversy places Switzerland in a broader European context where several countries are reconsidering their F-35 plans. Spain confirmed earlier in August that it will not acquire the American jet, citing budgetary priorities and a preference for the Eurofighter and the Future Combat Air System program. Madrid’s decision could end its fixed-wing carrier aviation capability and leave its air force reliant on a single combat type, a move criticized by Washington. Portugal has also expressed doubts about the aircraft, while Canada, despite earlier hesitation, is continuing its procurement. In contrast, Denmark and other operators have signaled interest in expanding their fleets. Switzerland’s case highlights the challenges of balancing cost, sovereignty, and interoperability in European defense procurement, and the Federal Council’s November decision will determine whether the Alpine country proceeds with the full order, reduces the fleet, or adopts compensatory measures to manage rising costs.
It is worth remembering that, on June 30, 2024, Switzerland’s RUAG received pre-approval from armasuisse for the RIGI project, which will allow the company to assemble and test four of the country’s 36 F-35A fighter jets with Lockheed Martin’s technical support. The initiative is classified as a technology and knowledge transfer program, rather than a full production effort, and is valued at nearly 500 million CHF ($556 million). RUAG’s involvement is intended to build expertise in the F-35 platform early on, secure its role in the European support network, and generate high-tech jobs, with 40 percent of the required personnel for the project to be sourced from western Switzerland. The project forms part of the offset obligations tied to the procurement contract signed on September 19, 2022, under which Lockheed Martin committed to offset 60 percent of the $3 billion contract value with Swiss industry. Deliveries of all 36 aircraft are scheduled between 2027 and 2030, with assembly in Switzerland and final acceptance of the four RUAG-produced jets in Cameri, Italy.
The aircraft will replace Switzerland’s aging F/A-18 Hornets and F-5 Tigers and will be stationed at Payerne, Emmen, and Meiringen to provide full national coverage. The first Swiss F-35As will feature TR-3 hardware and Block 4 software, placing them on par with other European operators expected to field nearly 500 F-35s by 2030. As RUAG builds capacity as a Material Competence Center for the Swiss Air Force, the program is expected to sustain existing jobs and create new ones while expanding Switzerland’s autonomy in maintenance and support. The F-35A, a fifth-generation stealth multirole fighter powered by the Pratt & Whitney F135 engine, combines stealth technology, advanced avionics, and versatile weapons capability, enabling both air-to-air and air-to-ground operations. With features such as the Distributed Aperture System, Electro-Optical Targeting System, and helmet-mounted display, the aircraft enhances situational awareness, while its armament includes a 25mm cannon, air-to-air missiles, precision bombs, and long-range standoff weapons.
