Swiss to reduce F-35 fighter jet order from US as costs rise

Switzerland said on Friday it would reduce the number of Lockheed Martin F-35A Lightning II fighter jets it is buying from the United States so it can stick to the original budget plan after the cost of the order rose.

Bern chose the F-35A as its next-generation fighter plane in2021 for what it considered a fixed price of 6 billionSwiss francs ($7.54 billion) for 36 jets. The United States later said that sum was a misunderstanding.

Following a cabinet meeting, the government said it had instructed the defence ministry to procure the highest possible number of F-35As within the 6 billion franc budget for new jets that was narrowly approved by the public in a 2020 referendum.

"Due to foreseeable cost overruns, maintaining the originally planned number of 36 F-35As is not financially feasible," the government said in a statement.

Still, the government said that pending examination of whether further steps are needed to boost Switzerland's defence capabilities, the cabinet could make a decision that would potentially enable it to reach the original target of 36.

The Swiss government this summer restated its commitment to buying the jets even after the United States put 39% tariffs on Swiss goods exports. Following a deal last month, the Swiss said on Wednesday those tariffs had now been reduced to 15%.

The government also said that given changes in the security situation, the defence ministry will take steps to modernize Switzerland's air defences under planning that envisaged the country requiring 55 to 70 modern fighter jets.

That potential increase in the number of aircraft on top of the F-35A purchase would be reviewed independently of the aircraft type, the government said.

(Reporting by Dave Graham; editing by Matthias Williams)