Switzerland to reduce F-35A Lightning II fighter jet order to stay within CHF 6 billion budget after cost rise

Bern selected the Lockheed Martin F-35A in 2021 as its next-generation fighter aircraft, assuming a fixed price of CHF 6 billion for 36 jets, a budget narrowly approved by voters in a 2020 referendum. The United States later said this understanding of a fixed price was a misunderstanding, leading to higher projected costs.

In a statement following a cabinet meeting, the government said it had instructed the defence ministry to procure the “maximum possible number” of F-35 fighter jets within the CHF 6 billion financial limit. It added that no additional credit would be sought, stating, “The will of the people will be honoured.”

Because of additional costs of up to CHF 1.3 billion announced by the United States during the summer, the government said it was “not possible to maintain the originally planned number of 36 F-35s” for financial reasons. It added that Switzerland had not been able to realise the contractually agreed fixed price of CHF 6 billion.

By the end of January, the defence ministry is to present “an internal prioritisation of requirements for the years 2026/2027”. After this review, the cabinet could decide on further steps that might allow Switzerland to reach the original target of 36 aircraft, a move that would require parliamentary approval and possibly another public vote.

The government said that the fighter jets and ground-based air defence systems already approved by parliament would allow Switzerland to protect itself from airborne threats only “to a limited extent”. For this reason, it ruled out a complete cancellation of the F-35 purchase.

It also rejected proposals to offset the higher costs by abandoning industrial offset transactions linked to the deal. According to the government, these arrangements are intended to build domestic expertise related to the aircraft and strengthen Switzerland’s independence in maintenance.

The government confirmed its commitment to the F-35 programme despite tensions in trade relations with the United States, including the recent imposition of tariffs on Swiss exports that were later reduced following a bilateral agreement. It said the purchase decision remained unchanged in light of broader security considerations.

In the medium term, Switzerland plans to strengthen its air defence in response to a changed security environment, based on the 2017 “Air Defence of the Future” report, whose conclusions have “largely retained their validity”. The report indicates Switzerland will ultimately require between 55 and 70 modern fighter jets, around twice the number currently being procured.

The defence ministry is now examining next steps independently of aircraft type. “The degree of maturity of new technologies and systems on the one hand and the urgency of the security policy situation on the other are important factors when deciding whether existing systems should be upgraded or new systems procured.”

Sources: swissinfo.ch.