4 ms·

Good timeline but would be better to put in that inflation was pretty big over that period as well.

• fakedang 1y ago
  Pointing to consumer or raw material inflation in the context of defence is a bit of a strawman argument. Defence deals are made for products that are supposed to often last 30-40 years at minimum. All factors such as inflation and potential continuing maintenance are already priced in at the onset. Unless the product faces significant issues down the line, or faces unexpected and ungodly levels of demand, price per product remains largely constant. Early buyers are paying the premium for early access to the tech, while late buyers are paying the same for an older product with inflation priced in.
  • dralley 1y ago
    Fighter jets are not immune to normal economics. If the material costs of production inputs go up, then so will the cost of the fighter, unless there was some pre-agreed binding contract which locks in the price, which in this case there was not. Switzerland should have negotiated a guaranteed price given how long the timelines on delivery were.
    • fakedang 1y ago
      > there was some pre-agreed binding contract which locks in the price, which in this case there was not. Switzerland should have negotiated a guaranteed price given how long the timelines on delivery were. Which in most cases is the norm. From what I understand, the Swiss deal is mired in federal corruption with the then defence minister, Viola Amherd, going for the most unfavorable terms.