Price Hitch Confronts Swiss Jet Deal with U.S.
Switzerland is in talks with the U.S. over price hikes for 36 F-35A jets from Lockheed Martin. Initial costs set at 6 billion Swiss francs may rise due to inflation and material expenses. Swiss broadcast indicates a potential 1.5 billion franc increase, though Switzerland remains committed to the purchase.
- Country:
- Switzerland
Switzerland has sought diplomatic talks with the United States after the cost of the F-35A fighter jets it plans to buy has come under dispute. The Swiss government stated that Washington is proposing an increase in the price set in its earlier agreement, citing rising raw material, energy costs, and U.S. inflation.
The original fixed cost for Switzerland's 36-jet deal with Lockheed Martin was around 6 billion Swiss francs, but Swiss broadcaster SRF reports that costs could spike by as much as 1.5 billion Swiss francs more.
The Swiss decision to select the F-35A sparked local controversy, with critics arguing that such advanced jets are unnecessary for the country's defense needs. Nevertheless, the Swiss government insists that backing out of the deal would have major repercussions, including compromising airspace security by 2032 as current jets retire.
(With inputs from agencies.)
Google News