The Marine Corps has been able to reduce the cost of flying the V-22 Ospreys by at least $3,000 per hour, the service’s top aviation officer said yesterday.

In addition to lowering the operational costs, the readiness rate and part reliability have also been noted improvements as the previously troubled V-22 program is “right at turning the corner,” Lt. Gen. Terry Robling said at a breakfast hosted by the Navy League.

“Were finding better ways to fly it–-more cost effective ways,” Robling said. The flight time cost has been shaved down from $12,000 per hour to $9,000 and lower in some cases, he said.

The Marine Corps has bought 143 of its MV-22 variants of the tiltrotor aircraft on a multi-year contract that expires next year with final delivery set for 2014.

The Bell Helicopter Textron [TXT]-Boeing [BA] team that builds the Osprey recently submitted a proposal for a second multi-year, fixed price contract for 122 Ospreys, 115 of the MV-22s and seven CV-22s flown by Air Force Special Operations Command (AFSOC).

Robling said the Pentagon is evaluating the proposal to ensure it meets the cost threshold required under a multi-year deal.