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Old November 30th, 2007, 05:26 PM   #21
hkskyline
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Quote:
Originally Posted by ddarkdom View Post
Well at least Incheon Tiger was planning to run domestic for 1 year, now it's just 1 extra year...

Air Korea wanted to begin international flights immediately..

Let the cannibalization begin.
The point is not as much how long carriers need to run domestic flights before going international, but rather the government's attitude over increased competition in the aviation sector. Who knows if that sour mood will translate into more regulations a few years down the road when the airlines can qualify for the expansion.
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Old December 3rd, 2007, 06:18 AM   #22
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Originally Posted by hkskyline View Post
The point is not as much how long carriers need to run domestic flights before going international, but rather the government's attitude over increased competition in the aviation sector. Who knows if that sour mood will translate into more regulations a few years down the road when the airlines can qualify for the expansion.
I think they applied this regulations for new companies to establish themselves as an safe airline domestic first rather than competition before going international. If you operate safely for 2 years, you're qualified to apply for international flight. If the government sole goal was to reduce competition, I wouldn't think they would have rejected Korean Air as it would have driven other airlines to think twice about operating international as a latecomer in the budget airline race. I think they are 3 or 4 new airlines that are to operate in Korea in the coming years.

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Old December 3rd, 2007, 05:52 PM   #23
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Originally Posted by kjoey View Post
I think they applied this regulations for new companies to establish themselves as an safe airline domestic first rather than competition before going international. If you operate safely for 2 years, you're qualified to apply for international flight. If the government sole goal was to reduce competition, I wouldn't think they would have rejected Korean Air as it would have driven other airlines to think twice about operating international as a latecomer in the budget airline race. I think they are 3 or 4 new airlines that are to operate in Korea in the coming years.
The difference is whether airlines are willing to put up with the cost and loss of operating domestically hoping they really can start international operations in a few years. If the regulatory regime can change so quickly as it is now, I question whether in 2 years any budget airline can even take off.

Obviously if the government did not reject Korean Air's application, the lawyers would be buzzing all over this. Even now, despite the new rules, Korean Air and Asiana can still keep their competitive advantage in international routes. It's not a total loss for them at all.
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Old December 4th, 2007, 07:34 AM   #24
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Originally Posted by hkskyline View Post
The difference is whether airlines are willing to put up with the cost and loss of operating domestically hoping they really can start international operations in a few years. If the regulatory regime can change so quickly as it is now, I question whether in 2 years any budget airline can even take off.

Obviously if the government did not reject Korean Air's application, the lawyers would be buzzing all over this. Even now, despite the new rules, Korean Air and Asiana can still keep their competitive advantage in international routes. It's not a total loss for them at all.
Yes, your right about Korean and Asiana keeping their competitive edge for now but studies show that with many Foreign Budget Carriers serving Seoul and the undercutting prices from Chinese Airlines, its gotten the Home Carriers scrambling to act. As you know, Incheon has some 30 plus flights from various Chinese Airlines a day, which all are undercutting Korean and Asiana.

I just hope that the government would stick to this arrangement to insure safety like they said.

Regarding your cost and loss of operating domestically, I know that Hansung Air and Jeju Air are making a profits but only time will tell when other carriers start operations. I know that besides Gimpo - Busan and Gimpo - Jeju routes, other domestic routes are weak in Korea.
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Old December 4th, 2007, 07:46 AM   #25
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Yes, your right about Korean and Asiana keeping their competitive edge for now but studies show that with many Foreign Budget Carriers serving Seoul and the undercutting prices from Chinese Airlines, its gotten the Home Carriers scrambling to act. As you know, Incheon has some 30 plus flights from various Chinese Airlines a day, which all are undercutting Korean and Asiana.

I just hope that the government would stick to this arrangement to insure safety like they said.

Regarding your cost and loss of operating domestically, I know that Hansung Air and Jeju Air are making a profits but only time will tell when other carriers start operations. I know that besides Gimpo - Busan and Gimpo - Jeju routes, other domestic routes are weak in Korea.
Korea itself is a very small market to sustain a large number of carriers flying domestically, let alone budget carriers. This will get worse as KTX becomes increasingly popular and Busan-Seoul is only 3 hours away after all. Clearly, to survive, these new airlines ought to connect internationally, so with these new regulations, I doubt anyone will seriously think of setting up an airline to brave these barriers to entry.
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Old December 5th, 2007, 07:00 AM   #26
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Originally Posted by hkskyline View Post
Korea itself is a very small market to sustain a large number of carriers flying domestically, let alone budget carriers. This will get worse as KTX becomes increasingly popular and Busan-Seoul is only 3 hours away after all. Clearly, to survive, these new airlines ought to connect internationally, so with these new regulations, I doubt anyone will seriously think of setting up an airline to brave these barriers to entry.
Korea does have a relatively small domestic market, but I was surprised that Hansung Air and Jeju Air are filling their planes up to 80% average on their routes and are making profits as a budge carriers. Jeju Air plans to operate International charter flight starting second half of 2008 and regular schedule flights afterward.
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Old December 5th, 2007, 07:28 AM   #27
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Copyright Tiger Airways Group






Incheon added as a hub to Tiger Airways Group. No links between its Singapore subsidiary and Korean one as yet.
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Old December 5th, 2007, 07:57 AM   #28
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Originally Posted by kjoey View Post
Korea does have a relatively small domestic market, but I was surprised that Hansung Air and Jeju Air are filling their planes up to 80% average on their routes and are making profits as a budge carriers. Jeju Air plans to operate International charter flight starting second half of 2008 and regular schedule flights afterward.
That doesn't mean more carriers will bring profits for all.

Budget airlines take off in Asia as demand grows
4 December 2007
The Korea Herald

Kim Ji-young, a 28 year-old Korean student in Italy, is a frequent flyer on Europe's budget airlines.

That she has to pay $2 for a coke on board hardly keeps her from indulging in flying cheap.

"I often flew from Milan to other European cities on easyJet Airline or other low-cost carriers to visit friends. They are half the price of bigger companies," Kim said.

"Many Korean students use the low-cost carriers in Europe. Seats are always mostly filled."

Some European budget carriers offer one-way flights between major cities for less than 10 euros, excluding tax and airport fees.

Low-cost airlines now account for one-fifth of all worldwide air travel, double from four years ago.

In Europe, about 30 percent of air travel is on budget carriers.

The bargain fares are no longer a remote phenomenon in Korea, either.

The competition in the low-cost air travel market is expected to intensify in the coming years. Many budget airlines are gearing up to tap a growing demand for international flights.

Korean Air Lines Co., the nation's largest carrier, announced last week that it will launch a new budget airline subsidiary next year.

The bold move reflects the fast-changing circumstances in the airline industry.

As holidaymakers become major fliers amid the recent overseas travel boom, companies increasingly focus on price rather than service.

The new passenger group is prepared to fly abroad without free meals and magazines if the tickets are cheap.

Industry watchers said Korean Air, which has usually focused on high-end business travelers, cannot ignore the no-frills market.


"It became increasingly necessary to establish a budget carrier as the demand is growing fast and customers are diversifying," said Song Jae-hak, an analyst at Woori Investment & Securities Co.

" Korean Air's new budget airline aims to preempt the emerging demand for cheap flights."

Korean Air came up with the plan after Tiger Airways, Singapore's budget carrier, decided to establish a low-cost airline venture with the Incheon city government earlier last month.

It also targets services to neighboring countries such as Japan and China, as does Korean Air's budget carrier.

Several domestic budget airlines such as Jeju Air Co. are also set to launch short-haul international flights in the coming years.

Industry experts stressed that Korean Air had no choice but to tap the low-cost segment due to the budget airline boom.

They pointed out that the demand will continue to expand rapidly as the competition will keep fares as low as possible.

In Southeast Asia, where many no-frills carriers are already in fierce competition, passengers are enjoying ultra-cheap ticket prices.

Tiger Airways, for example, offered some seats from Singapore to Bangkok at around $15 to attract cost-sensitive fliers.

But some critics doubt that budget carriers can be successful in the Korean market.

Kang Joo-an, president of Asiana Airlines Inc., Korean Air's main rival, said that the country does not have low-cost airports for budget airlines.

This contrasts with European budget airlines which use underutilized regional airports.


Although the minor airports are far from downtown, and lack amenities, they offer runways and hangars to airlines for much less than major airports do.

This helps European budget carriers make a profit, despite the low fares.

Korea and several Asian countries, however, do not have such regional airports for low-cost companies, skeptics say.

Safety concerns are another stumbling block.

Korean passengers still distrust cheap flights because of frequent accidents on local budget airlines.

The government also strictly regulates the budget airline business.

The Transportation Ministry announced last week that all new airlines are required to operate domestic flights for at least two years before offering international flights.

This increased concern that Korean Air may be forced to delay its low-cost international flight service for some years.


Despite the concerns, many strongly believe that in the coming years budget airlines will grow quickly, even at the expense of full-service rival airlines.

Optimists say that the low-cost market will eventually offer handsome returns, and make further efforts to cut costs and develop new demand.

They pointed to European leaders such as easyJet Airline as success stories.

The U.K.-based company reported a net profit of 152.3 million pounds ($313 million) in the year ending September, up over 60 percent from a year ago.

Budget airline officials say that there are many hidden costs that can be eliminated.

Profits can be earned by removing pockets in seatbacks and having pilots punch tickets, they said.

" Korean Air's decision (to establish a budget carrier) is an inevitable, and optimal choice," said Jay Ryu, an analyst at Mirae Asset Securities Co.
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Old December 6th, 2007, 02:11 AM   #29
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[QUOTE=hkskyline;16907262]That doesn't mean more carriers will bring profits for all.

I guess you missed my point. What I was trying to say is Korean Budget Carriers are making a dent on Korean Aviation Industry and is catching on to the public shown by Jeju Air and Hansung Air.

Now, with the future of new budget carriers succeeding, only time will tell like any other country or new airlines.
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Old December 6th, 2007, 03:22 AM   #30
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Originally Posted by kjoey View Post
I guess you missed my point. What I was trying to say is Korean Budget Carriers are making a dent on Korean Aviation Industry and is catching on to the public shown by Jeju Air and Hansung Air.

Now, with the future of new budget carriers succeeding, only time will tell like any other country or new airlines.
I don't think you can make a case for that argument without analyzing traffic flows and market shares. The introduction of KTX is a significant development as now people can just train within the country and save time vs. flying.
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Old December 6th, 2007, 07:47 AM   #31
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Korean Air Continues To Win Top Honors

Named Best Airline in Asia, Best Transpac Biz Class & Caterer of the Year

LOS ANGELES, Dec. 5 /PRNewswire/ -- Korean Air has been named Best Airline in Asia and Best Transpacific Business Class by Business Traveler magazine's readers in the publication's 2007 Readers' Choice Travel Survey.

In addition, the readers of PAX International magazine honored Korean Air with the Global Travel Catering Distinction Award (the magazine's highest honor) and named Korean Air caterer of the year for the Asia/Pacific region.

"We've invested a lot of time, effort and money into our product, especially in meals and inflight service so it's rewarding to see our work noticed and appreciated," said Korean Air's Americas' Marketing Director, John Jackson.

This is the second consecutive year that Business Traveler readers have voted Korean Air's Business Class the best over the Pacific. "The addition of Best Airline in Asia is significant because of the level of competition in that region," Jackson said. "We're honored that we've risen to the top in business travelers' minds."

Business Traveler conducts The Readers' Choice Best in Business Travel Survey annually. Business Traveler subscribers were selected at random and asked to identify the companies who have made their business travels more enjoyable in nearly 50 categories.

Throughout 2007, PAX International, the industry's largest publication for inflight catering executives, asked its readers to select the best new product launch, outstanding food service by a carrier, overall caterer and airlines of the year, for four regions of the world.

"We've instituted new dining services including Wedgwood place settings and improved inflight meals and it's great to have peer approval through the Pax International award program," Jackson added. "This is a significant industry honor."

About Korean Air:

Korean Air was named the Best First/Business Class Airline and the Best Frequent Flyer Program in TIME Readers' Travel Choice Awards 2006. In April and July 2007 respectively, the carrier was named the Best Economy Class in the OAG Airline of the Year Awards and the Skytrax 2006/7 World Airline Awards.

Korean Air, with a fleet of 124 aircraft, is one of the world's top 20 airlines, and operates almost 400 passenger flights per day to 115 cities in 37 countries. It is a founding member of SkyTeam, the global airlines alliance partnering Aeroflot, AeroMexico, Air France, Alitalia, CSA Czech Airlines, China Southern Airlines, Continental Airlines, Delta Air Lines, KLM and Northwest Airlines. More on Korean Air's programs, routes, frequency and partners is available at http://www.koreanair.com.

Source: http://sev.prnewswire.com/airlines-a...5122007-1.html
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Old December 6th, 2007, 08:20 AM   #32
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Originally Posted by hkskyline View Post
I don't think you can make a case for that argument without analyzing traffic flows and market shares. The introduction of KTX is a significant development as now people can just train within the country and save time vs. flying.
Obviously, with the structure they have in place, it seems to be working as both airlines are operating without any set backs. As for KTX, it hasn't made a big dent on the airline industry as had some predicted.

Last edited by kjoey; December 7th, 2007 at 08:44 AM.
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Old December 7th, 2007, 06:45 AM   #33
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Korean Air to establish New Cargo Terminal at Tianjin Binhai International Airport


Korean Air, the world's largest commercial cargo carrier in terms of FTK (freight ton-kilometers) volume, is strengthening its position in the China market with the establishment of a new cargo terminal at the Tianjin Binhai International Airport through a joint venture with Sinotrans Air Transportation Development of China.

"Establishing a joint venture between the largest logistics companies in Korea and China is a significant milestone for the future development of both entities," said Yang Ho Cho, Chairman and CEO of Korean Air at the signing ceremony in Tianjin on Wednesday. "Through the continuous investment, we aim to further develop this successful partnership."

A total of US$ 43.85 million will be invested in the new cargo terminal. Korean Air and Sinotrans Air will hold a 47% and 20% stake in the joint venture respectively. The rest will be held by Korea Airport Service (15%), Hanjin Transportation Co., Ltd. (10%), and Tianjin Dongfang Credit Investment Company Ltd. (8%).

Source: http://www.asiatraveltips.com/news07...AirCargo.shtml
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Old December 8th, 2007, 03:27 AM   #34
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Korean Air says under Australia price fixing probe


SEOUL, Dec 7 (Reuters) - Korean Air (003490.KS: Quote, Profile, Research), South Korea's biggest airline, said on Friday it was the target of a price-fixing investigation by Australian authorities, just months after it pleaded guilty in a similar U.S. probe.

"The investigation is similar to the one carried out in the U.S., and it is likely to continue for more than a year," a Korean Air spokesman told Reuters. The U.S. Justice Department in August said Korean Air, along with British Airways, had agreed to plead guilty and pay separate $300 million criminal fines for its role in conspiracies to fix prices of passenger and cargo flights.

Source: http://www.reuters.com/article/tnBas...27210620071207

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Old December 8th, 2007, 03:35 AM   #35
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Asiana to Share Flights With US Airways


Asiana Airlines will have code-sharing operation with US Airways starting Dec. 15 to expand its network in the United States.

Code-sharing is an arrangement through which an airline sells seats on another carrier's flights under its own name, and the two carriers will share flights on Asiana's five routes between Korea and the U.S. and US Airways' 20 U.S. domestic routes.

The two airlines are members of Star Alliance.

Following the agreement, passengers who fly to Los Angeles, San Francisco, Chicago or Seattle on an Asiana flight and transfer to Phoenix, Las Vegas, Philadelphia, Charlotte or Pittsburgh on a US Airways plane will be able to use US Airways' lounges and convert the U.S. carrier's mileage into Asiana's.

"Asiana has expanded cooperation with American carriers as demand for air travel between the two countries is expected to grow largely along with the free trade agreement and visa waiver program,'' an Asiana official said.

Source: http://www.koreatimes.co.kr/www/news...117_15137.html

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Old December 10th, 2007, 07:52 PM   #36
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Asiana Launches Mobile Phone Check-in System


By Cho Jin-seo
Staff Reporter The Korea Times

Asiana Airlines said Monday that it has launched a mobile phone check-in system for international flights. This enables passengers to check in for their flights as well as select their seats through their mobile phones, on a first-come first-served basis.

According to the firm, passengers who have bought their tickets in advance can access the airline's Web site by pressing 1588-8000 and the Internet button. They can then proceed to check in and also choose the seats they want.

The phone then downloads a barcode, which is used to print out a paper ticket at the unmanned ticket kiosks. The airline said that in the future the customers will be able to use the barcode itself as an e-ticket.

"This is an innovative service that saves time at ticket counters,'' said Ju Yong-seok, Asiana's executive of airport service. "In cooperation with related parties, we will further develop the service into a boarding system that does not require tickets.''

Up to nine passengers with the same reservation code can be processed at a time. But the system is exclusively made for SK Telecom subscribers, and is available only in Korean, Asiana said.

Only a few airline companies such as Air France and KLM have launched the mobile seat-selection system. Canada, China and some other countries are testing similar ones as well.

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Old December 14th, 2007, 03:00 AM   #37
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Korean Air to Limit Mileage Use Period


By Kim Rahn
Staff Reporter

Korean carriers, which used to be generous in handing out mileage, are becoming stingier, setting up a term of validity for the use of mileage.

Korean Air announced Wednesday that it will adopt a five year ``expiration date'' policy for its mileage starting next July. The carrier and another national flag carrier, Asiana Airlines, have been providing mileage without time limits so far.

However, Korean Air will not apply an expiration date to mileage that is accumulated by next June, with the mileage available for use at any time. For example, if a passenger accumulates 40,000 miles by next June and 10,000 miles afterward, on the next flight he or she takes with mileage, Korean Air will first deduct the 10,000 miles, which has a five-year time limit. Any additional miles will be deducted from the 40,000 miles, on which there will be no time constraint.

Most foreign carriers have such expiration dates, usually between 18 and 36 months, but Korean airlines have not had one for the convenience of passengers.

Korean Air and Asiana, however, said they have been burdened financially with such lenient services, and the burdens are growing annually.

Korean Air is also the only carrier among Sky Team members that does not have expiration dates for mileage.

As a complementary measure for the change, the carrier plans to increase the number of seats allocated for mileage passengers. It usually allocates less than 10 percent of the total seats for the mileage use during high-demand seasons, and 10 to 15 percent during other times.

Following Korean Air's decision, Asiana is also considering introducing a time limit for mileage use.

However, travelers are denouncing the measure, saying the carrier suddenly made decisions to change the system without consulting them. The majority of the customers are tourists and it is virtually impossible to accumulate such mileage as they have fewer chances to travel by air compared with businesspeople.

An Internet user with the ID "hanjeokgol'' said on Daum, "Although I have accumulated enough miles, I can't use them because all the seats allocated for mileage are always booked out. Now the airlines are taking my mileage away, they are thieves.''

Another user named Shin Jong-hun said, "In the case that credit card points are converted, credit card companies pay for the mileage to carriers. Mileage is not a financial burden to airlines at all.''

Some others said Korean Air is better than foreign carriers, as its time limit is longer.

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Old December 14th, 2007, 03:40 AM   #38
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5 years is quite good compared to what North American carriers are doing these days.
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Old December 18th, 2007, 12:33 AM   #39
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Asiana to add 20 jets by 2012, expand routes


Asiana Airlines Incorporated, Korea’s second-largest carrier, plans to add 20 more aircraft by 2012 as it expands routes to Europe and North America.
The Seoul-based airline’s total fleet will rise to 85 by 2012, spokesman Cho Yong-moo said yesterday. The carrier has not yet decided if it will buy or lease the planes, he said.

Asiana will begin three weekly flights between Seoul and Paris from March. It also plans to increase operations to New York and Los Angeles. Asiana and its bigger domestic rival, Korean Air Lines Company, are adding routes and planes as growth in Asia’s fourth-biggest economy spurs overseas travel demand.

“The competition on short-haul routes is getting fiercer,” said Song Eun-bin, an analyst at Samsung Securities Company in Seoul. “Long-haul operations will provide higher profits, so I think Asiana is going in the right direction.” Song has a “buy” rating on the company.

The carrier is considering Boeing’s 787 and 747-8 as well as Airbus SAS’s A380 and A350.

Bloomberg

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Old December 19th, 2007, 09:01 PM   #40
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KAL, China Southern Exchange Attendants


By Bae Ji-sook
Staff Reporter

Korean Air and China Southern Airlines have signed a pact to exchange flight attendants on three routes linking Incheon and three regions in China ― Beijing, Guangzhou and Changsha.

Forty flight attendants will work on the routes for the next six months starting from Tuesday.

Every flight will have two such cabin crews, who all participated in an additional flight safety training program provided by Korean Air and approved by the Ministry of Construction and Transportation. They will provide service in Korean and Chinese as well as in English. This is the first time for such an exchange to be made.

"This will be a good opportunity for the two airline companies to understand each other's service before big events such as the Beijing Olympics in 2008 and Shanghai Expo in 2010, where we will see an increase in the number of passengers,'' a Korean Air spokesman said.

The two companies will seek further cooperation through joint operation and marketing.

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