Swiss officials said on 25/6 that the US Defense Security Cooperation Agency (DSCA), part of the Pentagon, wants Switzerland to bear additional costs for its order of 36 F-35 stealth fighters, beyond the original agreed price of 6 billion francs (about 7.5 billion USD).
"Several challenges have arisen in recent months. According to the DSCA, Switzerland will have to bear additional costs due to high inflation in the US in recent years, as well as the sharp increase in the price of raw materials and energy after the Covid-19 pandemic," the Federal Council, Switzerland's highest executive body, said.
The Federal Council revealed that in February, the DSCA argued that "the fixed price was a misunderstanding and did not take into account additional costs". However, the Swiss Federal Council stated it is "sticking to the fixed cost", emphasizing that this amount was agreed upon in the contract and publicly confirmed by the US embassy in Switzerland.
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A US F-35A fighter jet during a training flight in Utah on 22/4. Photo: USAF |
A US F-35A fighter jet during a training flight in Utah on 22/4. Photo: USAF
Urs Loher, head of Switzerland's arms procurement agency, said the DSCA's new terms could cost the country an additional 650 million to 1.3 billion USD, depending on the potential impact of US tax policy, possible inflation trends, and geopolitical instability.
Swiss officials stated that a diplomatic solution must be found to resolve the disagreement. The Swiss Ministry of Defense has been tasked with proposing a solution to the dispute.
"Terminating the contract would have significant consequences. The Swiss military would no longer be able to guarantee the safety of its airspace and population from 2032, as the F/A-18 fighters are nearing the end of their service life," the Swiss government said.
Switzerland ordered 36 F-35A fighters in 2022, with the first deliveries expected in 2027, to replace its aging fleet of F/A-18Cs. At the time of signing, 6 billion francs was equivalent to 6.2 billion USD.
The F-35 stealth fighter costs between 80 and 100 million USD per unit, depending on the version. The F-35A is the variant developed for the US Air Force and allied nations. It is the smallest and lightest of the F-35 series, with greater maneuverability than the Marine Corps' F-35B and the Navy's F-35C, and is the only F-35 model with an internal 25 mm GAU-22/A cannon.
Around 1,000 units have been produced and delivered to the US military and its allies. The F-35 fighters are expected to be in service until 2088, with the program estimated to cost over 2,000 billion USD to manufacture and maintain the aircraft.
Nguyen Tien (AFP, AP, Reuters)