The Omsk Engine-Building Production Organization (Baranov OMPO) plans to increase 
  the TVD-20's price from 3.6m ($130,000) to 3.9m rubles this year. Raising the 
  price further in 2001 to 5m rubles. 
Despite the price increase, OMPO are confident that the brisk demand for the 
  An-3 will assure them of a steady stream of customers. The final emergence of 
  the TVD-20 powered An-38-200 for certification in addition to the Polyot produced 
  An-3 has also buoyed their optimism. According to OMPO, the An-38 powered by 
  the TVD-20 will make its maiden flight within the next few months with certification 
  targeted for 2001. According to sources at OMPO, the impact of the replacement 
  of the aircraft's Honeywell TPE331-14GR-801Es by the TVD-20 will be to reduce 
  the $4m cost of the An-38 by $1m. Reflecting the significantly higher price 
  of the Honeywell engine, reported to be at least triple that of the TVD-20. 
  This price decrease according to Alexander Usachev, head of marketing at AVPK 
  Sukhoi , NAPO's parent company , will boost sales in Russia and the CIS by making 
  the aircraft more financially viable for struggling airlines. 
TVD-20's life extended
The 1,375hp TVD-20's current life of 1,500hrs is also to be increased to 3,500hrs, 
  and according to its producer could be stretched 5,000 - 6,000hrs. Ten TVD-20s 
  were sold in 1999 and twenty sales are targetted for 2000, with fifty sales 
  a year thereafter. NAPO has even suggested that the engine installed on the 
  An-38 could have its life stretched to 10,000 hours, with considerable marketing 
  benefits at home and abroad. 
TVD-20 powered An-38-200
The installation of the engines on the An-38-200 has been expected for some 
  time. The current operators of the aircraft and its engines however, are generally 
  pleased with its performance, particularly Vostok Airline's, which has chartered 
  the 2 of its aircraft to operate in Malaysia and is reported to be planning 
  to do the same with a third. Alrosa is however, reported to be less enthusiastic 
  with the aircraft. Until recently the airline had both its aircraft grounded 
  due to a number of problems relating to vibration and other operating difficulties. 
  Sources however, report that the airline's problems are largely attributable 
  to the airline's operation of the aircraft and problems in getting parts to 
  the airline due to Russian customs problems. 
Further sales of the An-38-100 outside of Russia are potentially constrained 
  by the ability of NAPO to offer a sufficiently high level of support. Some level 
  of support is in place for the Malaysian deployment of Vostok's aircraft, but 
  extensive sales will require considerably more infra structure than currently 
  exists particularly in the distribution of parts, according to sources. NAPO 
  is however, reported to be keen to market theAn-38-100 outside of Russia at 
  least and has already made efforts in Korea and India and is currently looking 
  for assistance in Africa and Latin America. 
Honeywell production line closure
An additional problem for the two producers in certifying the Russian engine 
  is the potential failure to do so could leave them without a power plant. The 
  only other aircraft currently in production using the engine besides the An-38-100, 
  is the Dash 14, which is due to a wind down production in 2001, when the TVD-20 
  is due to be certified on the aircraft. Given the present lack of ongoing orders 
  for engines for the An-38, this would probably lead to the closure of the Honeywell 
  line and a future restart, would significantly push up unit costs according 
  to Honeywell. The Deputy Chief Designer of OMKB, Vladimir Ustyugov however, 
  seems unconcerned and refutes the view from some US sources that the TVD-20 
  is not a viable alternative to the Honeywell product and that the TVD-20 is 
  too heavy for the aircraft. He says that there appears to be confusion between 
  the two sides regarding what "dry weight" actually defines and in his view the 
  current engine after an upgrade will come down from 285 kg to 245kg and will 
  therefore be within the limits for the aircraft. Yevgeny Sharapov, the Deputy 
  Chief of Engineering of OMPO, is even more emphatic on the weight issue and 
  saying that the engine was suitable for the Omsk produced and smaller An-3, 
  let alone the An-38. 
Sharapov was reluctant to discuss sales of the engine on the An-38 and said 
  the current focus of the producer was on engines to power the An-3. Demand for 
  the engine will depend on the ability of the NAPO to sell the Russian engined 
  version after certification. Shaparov added that the closure of the line in 
  the US may in fact serve to bolster the attractiveness of the TVD-20 to potential 
  customers given OMPO's long term production plans. Illustrating NAPO's increasing 
  enthusiasm for a Russian powered aircraft. NAPO Sales Director Magmad Smoyan 
  noted that the manufacturer was encountering problems with the after-sale support 
  of the Honeywell TPE331-14GR-801E. The main problem being the delivery times 
  of spare parts from the US, although sources within Honeywell and outside have 
  suggested that this has more to do with Russian customs than the speed of delivery 
  by Honeywell. It has however, resulted in long delays, reported in some cases 
  to be months with the commensurate impact on the airline's operating the aircraft. 
  For Smoyan an An-38-200 with TVD-20s will be more attractive for domestic customers 
  on the basis of price: he said that using the cheaper engines would bring prices 
  down by 25%, after-sale support, and less customs hassle. Smoyan did however, 
  add, that certain potential foreign customers such as India, have only expressed 
  interest in the Honeywell powered An-38-100.
 According to Smoyan, while the An-38 is included into the Aviation Program 
  till 2015, financing from the budget in insignificant and the programme is largely 
  funded from NAPO's own resources.