Switzerland reportedly considers cancelling multimillion Israeli drone deal due to technical challenges

The Swiss government is reportedly considering canceling a $380 million deal for Hermes 900 Starliner drones produced by the Israeli defense company Elbit Systems, according to Swiss media reports on Sunday. The newspaper NZZ and broadcaster SRF noted that the Swiss Defense Ministry ordered six of the drones a decade ago. However, technical problems have since emerged, threatening to undermine the substantial agreement with the Israeli firm.

"The technical difficulties were grave," the Swiss media report stated. It continued by stressing that "the drones would require choppers or other aircraft to fly with them to prevent air collisions." This reality contradicted Elbit’s reported promise that the drones would be capable of flying independently in civilian routes without any problems. 

Furthermore, a previous report raised concerns that the Israeli-made drones would face navigation challenges while flying across Switzerland’s mountainous geography. In addition, Swiss officials are concerned that the drones are not able to identify flocks of birds amid flights, which potentially threatens their operational capabilities. 

Swiss authorities are reportedly frustrated by multiple delivery delays caused by ongoing technical challenges since 2019. So far, Elbit has delivered four of the six ordered drones, while the remaining two are now expected to arrive in 2029 – a full decade behind schedule.

The technical problems have reportedly resulted in growing tensions between the Swiss authorities and Elbit. Swiss officials and representatives from Elbit reportedly recently held tense meetings in Cyprus in a so far unsuccessful effort to solve the crisis. 

Looking ahead, the report noted that the Swiss defense minister will ultimately decide whether to cancel or continue the agreement with Elbit. 

"Defense Minister Martin Pfister plans to decide by the end of the summer whether to continue the project, scale it down or cancel it," the report stated. 

"For a long time, canceling the project was considered unacceptable," the report continued, adding "patience and trust seem to have been lost."

Speaking to SRF on Friday, the Swiss National Armaments Director Urs Loher assessed that the challenging Elbit drone project “reached a point where the question arises as to whether the famous last straw has broken the camel’s back.”

A complete cancellation of the order could potentially cost Switzerland some 300 million dollars. 

Despite the current tensions with Switzerland, Elbit has emerged as a global provider of cutting-edge military technologies. Last November, Elbit announced that it had secured a $335 million agreement with a European country involving Hermes 900 drones and PULS rocket launchers. 

“These contracts reflect the global trust in our innovative systems, such as the PULS and Hermes 900, which are designed to meet a broad range of mission requirements,” stated Bezhalel Machlis, president and CEO of Elbit. 

“Through our comprehensive portfolio, we remain committed to providing our customers with reliable, technologically advanced tools that address today’s complex defense challenges,” he added.

Israeli-manufactured drones also played a leading role in Israel’s Operation Rising Lion military offensive against Iran’s military and nuclear facilities last month.