U.S. Navy and Marine Corps officials have inked a memorandum of understanding to buy V-22 tiltrotor aircraft built by Boeing (NYSE: BA) and Bell Helicopter, Reuters reported Tuesday.
Citing unnamed sources, Andrea Shalal writes the Navy plans to buy four V-22s between fiscal year 2018 and fiscal 2020 under the agreement.
The Marine Corps believes the additional orders will help to reduce the production and maintenance costs of the aircraft, Reuters reports.
The V-22 aircraft is designed to carry passengers and cargo to carriers, according to the report.
Reuters cites a Breaking Defense report that says the agreement is subject to a third multiyear procurement deal slated to begin in fiscal 2018.
The agreement also needs ratification by Congress for future budget legislation, Shalal reports.
