I don't understand why people claim that. Here are the actual facts/timeline:
Nov 2021: Switzerland agreed contract terms with the U.S. government for 36 F-35A and budgeted CHF 6.035 bn. Under U.S. FMS (Foreign military sales) rules, LOA (letter of offer) values are estimates and the buyer owes actual full cost, so this was not an enforceable CHF-fixed total.
May 2022: The Swiss Federal Audit Office warned of legal uncertainty around any fixed price, but the warning was ignored internally.
Sep 2022: Parliament authorized; LOA signed Sep 19, 2022.
Jun 2025: Switzerland announced the U.S. disputes a binding fixed price and sought a diplomatic solution. U.S. officials pointed to inflation/raw-material/energy costs that have changed.
Aug 2025: Switzerland announced it cannot legally enforce a fixed price and is estimating additional costs (+CHF 650 m–1.3 bn).
Pointing to consumer or raw material inflation in the context of defence is a bit of a strawman argument. Defence deals are made for products that are supposed to often last 30-40 years at minimum. All factors such as inflation and potential continuing maintenance are already priced in at the onset. Unless the product faces significant issues down the line, or faces unexpected and ungodly levels of demand, price per product remains largely constant. Early buyers are paying the premium for early access to the tech, while late buyers are paying the same for an older product with inflation priced in.
Fighter jets are not immune to normal economics. If the material costs of production inputs go up, then so will the cost of the fighter, unless there was some pre-agreed binding contract which locks in the price, which in this case there was not. Switzerland should have negotiated a guaranteed price given how long the timelines on delivery were.
> there was some pre-agreed binding contract which locks in the price, which in this case there was not. Switzerland should have negotiated a guaranteed price given how long the timelines on delivery were.
Which in most cases is the norm. From what I understand, the Swiss deal is mired in federal corruption with the then defence minister, Viola Amherd, going for the most unfavorable terms.
I don't understand why people claim that. Here are the actual facts/timeline:
Nov 2021: Switzerland agreed contract terms with the U.S. government for 36 F-35A and budgeted CHF 6.035 bn. Under U.S. FMS (Foreign military sales) rules, LOA (letter of offer) values are estimates and the buyer owes actual full cost, so this was not an enforceable CHF-fixed total.
May 2022: The Swiss Federal Audit Office warned of legal uncertainty around any fixed price, but the warning was ignored internally.
Sep 2022: Parliament authorized; LOA signed Sep 19, 2022.
Jun 2025: Switzerland announced the U.S. disputes a binding fixed price and sought a diplomatic solution. U.S. officials pointed to inflation/raw-material/energy costs that have changed.
Aug 2025: Switzerland announced it cannot legally enforce a fixed price and is estimating additional costs (+CHF 650 m–1.3 bn).