Switzerland’s F-35 dispute lingers as the first jet enters assembly and the old fleet is pushed out

Switzerland’s F-35 purchase is entering a new phase operationally, even as the pricing fight around it remains unresolved. The first aircraft destined for Switzerland has begun major assembly in Marietta, Georgia, and the Swiss government says initial deliveries are still expected from mid-2027, with aircraft arriving in Switzerland from mid-2028.

The business problem is that the program’s price is still under dispute. Swiss officials say the country contracted a fixed price with the United States for the F-35A and continue to regard that price as valid, but the U.S. side has said the fixed-price understanding was a misunderstanding and has argued that Switzerland should cover higher costs tied to inflation and raw materials. Because the aircraft are bought through the Foreign Military Sales channel, Bern says a diplomatic solution is the only available path.

That dispute is now affecting fleet planning. In March, the Swiss Federal Council said it would seek to buy the maximum number of F-35As possible within the approved spending envelope rather than insist on the originally planned 36 aircraft. Swiss officials said a 394 million franc supplemental credit would likely translate into about 30 jets in total, although the final number will not be fixed until contract talks between the U.S. government and manufacturers are complete.

At the same time, Switzerland is making sure it is not left exposed if the F-35 timetable slips or the order is trimmed. On June 1, the government said the useful life of the air force’s F/A-18C/D fleet had been extended and that those aircraft can remain operational into the early 2030s, up to the introduction of the new F-35A. The older jets have been in service since 1997.

For Lockheed Martin, the Swiss case remains part of a wider European F-35 buildout. The company said the first Swiss jet has now entered major assembly and reiterated that the program involves more than 2,100 suppliers worldwide, along with industrial cooperation with Swiss partners. Lockheed also pointed to the aircraft’s long-term role in Swiss air defense as production advances.

The headline risk for investors and suppliers is not whether the plane is being built, but how many Switzerland ultimately takes and who absorbs the cost overrun. The Swiss government has already signaled that a full return to 36 aircraft would require much more money than voters approved, while also warning that reducing the fleet has military consequences. That leaves a narrower, more uncertain commercial path for one of Lockheed Martin’s marquee European sales.