Switzerland Inks $6.2B Procurement Contract for Lockheed F-35As

Switzerland will buy from the U.S. government 36 Lockheed Martin-built (NYSE: LMT) F-35A fighter jets under a potential $6.25 billion contract.

The European country expects deliveries of the F-35 conventional takeoff-and-landing variant to occur between 2027 and 2030 to replace its fleet of F/A-18 Hornet and F-5 Tiger fighter jets under the procurement contract signed Monday by Martin Sonderegger, the Swiss government’s national armaments director, and Darko Savic, the Swiss F-35A program manager, Switzerland’s federal defense, civil protection and sport department said Monday.

Switzerland is purchasing the aircraft from the U.S. government through a foreign military sales agreement.

The contract also includes the provision of mission-specific equipment, logistics package, weapons and ammunition, initial training, mission planning systems and training platforms. It also covers costs with regard to the aircraft’s integration into the Swiss government’s command and control system, industry support services, value-added tax on imports and inflation.

According to the government release, Swiss defense officials and Lockheed signed an offset agreement, which “forms the basis for the US manufacturer to conduct offset businesses with the Swiss industry.” Swiss companies could secure contracts worth $3 billion combined.

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