Swiss-U.S. Fighter Jet Deal: A Pricey Diplomatic Dilemma

Switzerland is in discussions with the United States following an unexpected increase in the price of F-35A fighter jets, originally set at a fixed cost of around 6 billion Swiss francs. The increase suggests an additional cost of $650 million to $1.3 billion due to rising material and energy costs, and inflation in the U.S.

Urs Loher, head of the Swiss defense procurement agency, stressed the importance of adhering to the initial contract and acknowledged the necessity for a diplomatic resolution. He emphasized the discomfort of encountering a 'different reality' despite clear contractual terms.

Defence Minister Martin Pfister remains optimistic about reaching an agreement with U.S. officials. While Switzerland stays committed to the F-35A deal due to its vital need for air defense post-2032, there is a possibility of canceling the order if a solution is not reached.

(With inputs from agencies.)