Swiss to Vote on Spending $6.5 Billion on New Fighter Jets

(Bloomberg) -- Neutral Switzerland looks ready to green-light spending as much as 6 billion francs ($6.5 billion) on fighter jets made by companies such as Boeing Co. or Lockheed Martin Corp.

The referendum on replacing the country’s aging fleet from 2030 is scheduled for Sept. 27 and is expected to pass. Measures on immigration and paternity leave are also on the ballot, part of Switzerland’s tradition of direct democracy which sees citizens casting ballots on a variety of topics several times a year.

Sunday’s vote is the government’s second attempt at an upgrade of its air force. Officials say it’s necessary to keep the country safe, including for when heads of state attending the World Economic Forum in Davos.

But critics say fighter jets aren’t suitable for modern-day threats like cyber-attacks or natural catastrophes.

Six years ago the Swiss rejected a 3.1 billion-franc order for Saab AB’s Gripen jets. That was shortly after the Swiss had to rely on the Italians during a passenger plane hijacking in Geneva. The incident took place too early in the morning for their own air force.

Here’s a rundown of Sunday’s vote:

Now the government is asking the public to approve the funding before deciding on the type of aircraft. Bids from France’s Dassault Aviation SA, Airbus SE, Boeing and Lockheed Martin have been solicited.

Several European countries have decided to modernize their fleets, according to Jane’s Defence Weekly, with seven NATO air forces having chosen Lockheed Martin’s F-35.

Belgium decided in 2018 to buy 34 F-35 jets for 3.8 billion euros ($4.3 billion) while Denmark in 2016 agreed to spend 20 billion kroner ($3 billion) to buy 27 F-35 Joint Strike Fighter jets.

Whichever company wins the Swiss aircraft contract will be required to place orders in the country equivalent to 60% of the purchase price of the new planes. The move is designed to help local industry.

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