The Swiss defense contractor Ruag is scaling back its ambitions for the F-35 assembly project known as “Rigi.” Originally intended to include the assembly of four F-35 fighter jets at the company’s facility in Emmen, the project will now be limited to three aircraft. This adjustment comes as the company navigates the complexities of high production costs and ongoing contract negotiations.
The reduction in scope stems from concerns regarding manufacturing costs. Reports indicate that Lockheed Martin, the manufacturer of the F-35, is not prepared to cover the costs associated with the assembly of four jets within Switzerland. For Ruag, this shift represents a challenge in its broader strategy to establish the technical expertise necessary to maintain not only the 30 Swiss F-35s but also aircraft from international air forces.
Strategic Stakes for the Future
Ruag’s leadership remains focused on long-term viability despite the current contraction of the assembly project. Ruag Verwaltungsratspräsident Jürg Rötheli has stated that the company is currently in final contract negotiations. While he declined to confirm the exact number of aircraft, he emphasized that the primary goal—building sufficient know-how—remains achievable with three jets.
The company views the F-35 maintenance market as a vital successor to its current work on the F/A-18 fleet. As the Swiss military prepares to phase out its older F/A-18 jets by the early 2030s, a significant portion of Ruag’s revenue is at risk of vanishing. Securing a role in the maintenance of the European F-35 fleet, which is expected to total between 800 and 900 jets, is essential for the company’s financial future.
What Happens Next?
In the coming months, the finalization of the contract for the Emmen assembly line will be a key indicator of Ruag’s operational status. Beyond the assembly phase, the company is actively exploring opportunities to secure maintenance contracts from other nations, with discussions already reportedly underway with two countries in northern Europe. The scope of the work Ruag will be permitted to perform on international aircraft remains subject to approval by the United States and other nations involved in the F-35 development program.
Frequently Asked Questions
Why is Ruag only assembling three F-35s instead of four?
The decision is driven by costs. Lockheed Martin is reportedly unwilling to bear the financial burden of assembling four jets in Switzerland, leading to a reduction in the project’s scope.
Why is the F-35 project so important for Ruag?
Maintenance of the Swiss Air Force’s current fleet provides nearly half of Ruag’s revenue. As the older F/A-18 jets are retired in the early 2030s, the company requires the F-35 maintenance business to replace that significant portion of its income.
Does the reduction in jets hinder Ruag’s ability to gain expertise?
Ruag leadership maintains that while the reduction is a setback, the company will still be able to acquire the necessary technical know-how to support future maintenance operations with three jets.
How do you think Switzerland should balance the costs of domestic defense manufacturing against the need to maintain international competitiveness?
