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Old August 9th, 2008, 06:23 PM   #1161
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Dragonair Offers Inflight Olympics Highlights for Passengers
5 August 2008
Press Release



(HONG KONG) Dragonair passengers will be able to enjoy the latest highlights from the 2008 Beijing Olympic Games when flying on the majority of the airline’s aircraft. This is the first time for Dragonair to provide regular updates from a major sporting event.

From August 9 to 25, the airline will upload a highlights package from the previous day’s Olympic action on all its A330 and A321 aircraft to enable passengers to stay closely in touch with the progress in Beijing.

Dragonair will also show the latest Olympics medal table on its Airshow information channel on all its A330 aircraft. The table will be updated hourly to give passengers the latest rundown on which country is leading the way - another first for the airline.
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Old August 10th, 2008, 07:41 PM   #1162
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Cathay's airfare is very low compared to other Asian carriers. Fuel charge & Tax also very low. Maybe need to be raised a lil to return to profit ?
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Old August 11th, 2008, 07:15 PM   #1163
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Cathay Pacific announces further capacity redeployment spurred by high fuel prices
11 August 2008
Press Release

Cathay Pacific Airways today announced a new round of capacity redeployment to help offset the impact of high fuel prices on the airline. The move includes reducing the number of the flights to North America by 10, while adding eight new flights to Australia and upgrading to a bigger aircraft for 14 European flights each week. Overall, the changes result in no change in planned capacity at the airline.

This is the second wave of redeployment brought about by the need to limit the impact of high fuel prices and switch aircraft to routes with greater revenue potential. In July the carrier announced it will add four new flights a week to Dubai and Bahrain, while reducing Toronto services by three a week and Vancouver by four a week. In addition, New Zealand will go back to a twice-daily service from the winter while the service between Hong Kong and Riyadh will fly direct, rather than route through Bahrain.

Cathay Pacific Chief Executive Tony Tyler said: “The extent of the impact fuel prices are having on our business was underlined when we announced a loss of HK$663 million in our interim results last week. We have to maximise our earnings during this difficult period which is why are moving our capacity. However, while we are reducing services on some routes, we will continue to maintain the integrity of our network, reshaping it where necessary to ensure we fly aircraft to where we can cover our costs and also make some money.”

In the latest redeployment, the carrier will suspend the daily CX884/5 service to and from Los Angeles with effect from 26 October. The route will then operate as a double-daily service until winter 2009 when the suspended service will be reinstated on four days a week, moving back to daily by December 2009.

In Canada, the Vancouver route will be served by 14 flights a week instead of 17 as the CX836/5 service will be suspended from 26 October. The airline currently operates three flights daily but this will drop to 17 with effect from 16 September.

Consistently high demand to Australia is leading the airline to considerably enhance its services to the country. Perth will become a daily service with two additional flights a week from 26 October, while Brisbane will move from a daily service to 10 flights a week. Sydney, currently served by 25 flights a week, will move to four flights each day.

In a move to maximise revenue potential on key European routes, Cathay Pacific will also upgrade two existing services. The daily flight to Amsterdam will change from an A340-300 to the larger Boeing 747-400 from 26 October, as will the daily CX253/4 flight to and from London.

Cathay Pacific is committed to continuing to develop Hong Kong’s position as one of the world’s leading international aviation hubs. Earlier in the year the airline added 20 flights a week to India to help further develop its home city’s hub role.
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Old August 14th, 2008, 06:01 AM   #1164
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Cathay Pacific releases combined traffic figures for July 2008
13 August 2008

Cathay Pacific Airways today released combined Cathay Pacific and Dragonair traffic figures for July 2008 that show a near double digit growth in the number of passengers carried by the two airlines compared to the same month in 2007, along with a rise in cargo tonnage.

In July the two airlines carried a total of 2,308,738 passengers – an increase of 9.7% over the same month last year. The month’s load factor was down 0.5 percentage points to 84.1%, while capacity, measured in available seat kilometres (ASKs), increased by 16.3% on the previous year. For the year to date, the passenger total is up 13.1% compared to a capacity rise of 14.6%.

Cathay Pacific and Dragonair between them carried 142,770 tonnes of cargo and mail in July, up 5.0% on July 2007. Capacity for the month, measured in available

cargo/mail tonne kilometres, grew by 2.4% while the cargo and mail load factor dipped by 0.1 percentage points to 66.0%. For the year to date, the 6.6% rise in cargo tonnage compares to a 6.2% capacity climb.

Cathay Pacific General Manager Revenue Management Tom Owen said: “Passenger traffic continued to grow in the traditional peak period of July, with a high total passenger load factor only marginally down on the previous year, despite significant capacity additions to Australia, North America and India. The outlook remains reasonable for the rest of the summer period. Due to the impact of soaring fuel prices, we will redeploy some of our North American capacity from October, by adding services to the Middle East and Australia, and upgrading some services to Europe where we can better cover our costs."

Cathay Pacific General Manager Cargo Sales & Marketing Titus Diu said: “We were pleased to see cargo and mail tonnage growth once again stay ahead of capacity growth, though demand into and out of Northeast Asia remained weak. The continued high price of fuel is making it more difficult to operate profitably, particularly on long-haul routes, making it imperative to move to a more fuel-efficient fleet. Our second Boeing 747-400ERF “Extended Range Freighter”, which arrives in August, will be a boon on long-haul trunk routes.”

http://www.cathaypacific.com/cpa/en_...0007d21c39____
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Old August 16th, 2008, 08:04 PM   #1165
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Old August 29th, 2008, 04:27 AM   #1166
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Cathay flight without third pilot sparks legal action
Hong Kong Standard
Thursday, August 28, 2008

An aircrew union is legally challenging the Director of Civil Aviation for allowing a Cathay Pacific flight from Melbourne to Hong Kong to operate with only two pilots instead of three.
In a writ filed with the High Court, the Hong Kong Aircrew Officers' Association expressed its concern over aviation safety after the Civil Aviation Department waived the three-pilot requirement in February.

The association is seeking a judicial review asking the court to declare the decision unlawful and improper.

According to the writ, flight CX168 was scheduled to fly overnight from Melbourne to Hong Kong on February 27 but one pilot fell sick.

According to the union, the operation manual requires three pilots because the flight covers a long distance.

The union also cited a Civil Aviation Department standard provision that said: "If the planned flight-duty period for a two-crew aircraft includes a scheduled sector length in excess of nine hours, one additional pilot must be on board to meet the relief crew qualifications."

According to the writ, Cathay Pacific is said to have asked the department to allow the flight to proceed without the full crew complement.

The union wrote to the department on May 8 seeking clarification.

In a May 27 reply, the department said the two pilots were well rested and had been rostered for a number of days before the flight in question.

But the association rejected the explanation.

In the writ, the association argued that "fatigue is recognized to be insidious in nature such that an individual often cannot accurately assess or forecast their own fatigue, especially for crew members before a long-haul flight."

The writ also said members of the crew have to be constantly alert to deal with any technical or meteorological difficulties and any possible abnormal or emergency situations.

"Thus, a high degree of alertness and reliability of the crew member is pertinent to the safety of the flight that they operate."

The union is also seeking an injunction from the court to refrain the director from acting in breach of the requirement.

Cathay Pacific refused to comment, saying the airline is not one of the parties in the litigation. In its reply last night, the Civil Aviation Department said it "has never and will never compromise safety. This applies equally to the flight in question on February 27 from Melbourne to Hong Kong."
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Old August 29th, 2008, 10:56 AM   #1167
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Europe carbon emission plan will cost airlines 'a fortune'
Cathay's Tyler says scheme will add to industry's high fuel bills

18 August 2008
South China Morning Post

Cathay Pacific Airways and the entire airline industry will face strong headwinds in the coming years as costly regulatory measures, including a carbon emission programme slated for 2012, threaten to shred their bottom lines.

The European parliament is demanding that airlines pay for their carbon footprints on every route they fly to and from Europe beginning in 2012.

On top of a price-fixing probe against it in several jurisdictions, Cathay, like other airlines, will have to pay taxes to European countries to offset the carbon dioxide they produce on flights heading to or leaving Europe.

The European emission trading scheme, which aims at reducing the greenhouse gases generated by aircraft, has been roundly condemned by airlines as ill-designed, hitting them at a time when they are being battered by high oil prices.

Tony Tyler, chief executive of Cathay and chairman-designate of the International Air Traffic Association (Iata), said the emission trading scheme would not only cost the industry a fortune but also bring about a serious unintended consequence - a distortion in airline competition. "It is just like a fund-raising exercise on an industry losing billions of dollars."

Instead of using the money to clean up the skies in Europe, Mr Tyler said the funds would probably go to the treasuries of European countries to pay for their staff.

He said Cathay had just come up with a cost-saving programme for the rest of the year that amounted to several hundred million dollars. That comes after it posted a HK$663 million loss in the first half due to high fuel costs and a fine to settle a price-fixing case in the United States.

It is not known how much the carrier will have to pay under the carbon emission scheme but Mr Tyler said it would wipe out the cost savings.

In its first year of operation, the emission trading system will add {euro}3.5 billion (HK$40.28 billion) to industry costs and this will rise year by year, according to Iata. "The impact on [Cathay] is significant and very unwelcome," Mr Tyler said.

The cost to Cathay is difficult to quantify since the price of carbon emissions will go up as 2012 approaches and more companies rush to buy carbon credits before the scheme is implemented. For example, the price for a tonne of carbon dioxide emissions is {euro}27.10 this year and {euro}27.70 for next year. The futures carbon price for 2011 is {euro}29.05.

Mr Tyler said the scheme was based on fallacies that would punish non-stop flight passengers and encourage more carbon emissions.

As an example, he cited two passengers travelling from Hong Kong to London - one on a direct flight and another with a stopover in Dubai. The passenger with the Dubai stop would pay less because he would pay only for the Dubai-London leg. The passenger on the direct flight would pay for the entire trip.

Only a global emission scheme could prevent such distortion among competing airlines, Mr Tyler said. "If the Hong Kong-Dubai leg is also subject to the emission scheme, the distortion will be taken out."

On the issue of fuel hedging, Cathay has increased its coverage of hedged fuel consumption to 52 per cent for the rest of the year from 30 per cent in the first half. But analysts still find the hedging mechanism too conservative because the option will be rendered useless when oil price swings surpass US$10 or US$20.

"We are in a highly volatile market and no one knows where oil prices will go," Mr Tyler said.

"If the oil prices go up, you look smart; if they go down, you look stupid as you have to pay a high price and have lost in fuel hedging. That's the risk I am not going to take; it's gambling."
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Old September 10th, 2008, 04:58 AM   #1168
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Cathay Pacific chief hints at more cost-cutting, citing fuel prices
10 September 2008
South China Morning Post

The chief executive of Cathay Pacific has hinted at deeper cost-cutting, saying high fuel prices and a global recession threatened to have a severe impact on Hong Kong's flagship airline.

Tony Tyler said in a newsletter to staff that further cost-cutting measures may be necessary, particularly as the US and UK may be "heading towards recession".

"These are extremely difficult times for the aviation industry and I'm sorry to say there doesn't appear to be any light at the end of the tunnel just yet," Mr Tyler wrote in CX World, an internal newsletter circulated among staff yesterday. "The industry is now in the middle of a major crisis and it's unlikely that we are going to emerge unscathed."

He said the recent fall in oil prices had not eased the pressure on Cathay Pacific, which earlier this summer announced its first losses since 2003.

Added to this, Mr Tyler said, there had been a softening in the Hong Kong corporate market, Cathay Pacific's biggest source of revenue. He described the trend as "worrying".

The situation could be worsened still by recession in the United States and United Kingdom which would "hit us hard", Mr Tyler said, as both markets generate a big percentage of the airline's revenue.

Cathay has already reduced flights on less popular routes and increased fares and surcharges.

But Mr Tyler warned further measures could be needed: "If the situation changes for the worse, we may have to change our strategy."

He went on: "If revenue drops - and some believe we are about to enter phase two of the crisis when demand will start to collapse - then we'll have to think again."

Mr Tyler also criticised recent court cases brought against Cathay Pacific by staff unions. "It's been a jarring note to see the airline involved in a couple of high-profile court cases recently involving different staff groups," he said. "Of course staff have a right to air their grievances {hellip} but right now the focus for all of us needs to be on working together to get through what looks set to be a very difficult time."

John Findlay, general secretary of the Aircrew Officers' Association, said Mr Tyler was being prudent, but said: "Cathay's record of recovering from such crises ... is there for all to see. I'm very confident that this will happen again."
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Old September 11th, 2008, 10:25 AM   #1169
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RESEARCH ALERT - UBS upgrades Cathay to neutral from sell

HONG KONG, Sept 9 (Reuters) - UBS upgraded Cathay Pacific Airways to neutral from sell due to lower jet fuel prices.

Singapore jet fuel prices have fallen 30 percent since their July peak, taking some pressure off airlines' margins in the short-term, UBS said in a report.

"We think Cathay is well positioned to take market share," UBS said. It raises the target price of Cathay Pacific to HK$15 from HK$14.25.

Shares of Cathay Pacific have fallen more than 28 percent so far in 2008 to end at HK$14.56 on Monday, compared with a more than 25 percent fall in the benchmark Hany Seng Index <.HSI>. (US$1=HK$7.8)
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Old September 11th, 2008, 07:04 PM   #1170
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Cathay Pacific releases combined traffic figures for August 2008
11 September 2008
Press Release

Cathay Pacific Airways today released combined Cathay Pacific and Dragonair traffic figures for August 2008 that show only a marginal growth in the number of passengers carried compared to a double-digit capacity climb. For cargo, both the tonnage carried and capacity fell compared to the same month in 2007.

Last month Cathay Pacific and Dragonair carried a total of 2,129,749 passengers – an increase of 0.5% over August 2007. The month’s load factor was down 4.7 percentage points to 78.4%, while capacity, measured in available seat kilometres (ASKs), was up 14.0% on the previous year. For the year to date, the number of passengers carried has risen by 11.3% compared to a capacity rise of 14.5%.

The two airlines carried 140,589 tonnes of cargo and mail in August, a drop of 3.1% on the same month in 2007. Capacity for the month, measured in available cargo/mail tonne kilometres, fell by 5.4% while the cargo and mail load factor rose by 0.6 percentage points to 65.9%. For the year to date, the amount of freight carried has risen by 5.3% compared to a capacity climb of 4.6%.

Cathay Pacific General Manager Revenue Management Tom Owen said: “The number of passengers carried rose only marginally in August against a significant rise in capacity compared to last year – mainly on routes to Australia, North America and India. The Beijing Olympics and the impact of the two typhoons that hit Hong Kong had a negative impact on passenger numbers for the month. Premium demand continues to show signs of softening in the months ahead."

Cathay Pacific General Manager Cargo Sales & Marketing Titus Diu said: “There was a significant reduction in our freighter capacity in August as we reduced services to offset the impact of high fuel prices. Demand during August was certainly affected by the Olympics in Beijing, with a drop in exports out of China around the Games period. On the plus side, our second Boeing 747-400ERF ‘Extended Range Freighter’ is now in service and helping to improve efficiency on our important North American trunk routes.”
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Old September 12th, 2008, 06:02 PM   #1171
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By marcuslai from HKADB :































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Old September 13th, 2008, 06:35 AM   #1172
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Old September 13th, 2008, 08:54 AM   #1173
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Cathay Pacific plunges into HK$663m loss
Published: 2008/08/07

HONG KONG: Hong Kong airline Cathay Pacific said yesterday it had tumbled to a loss of HK$663 million (HK$100 = RM41.98) in the first half of 2008 due to soaring fuel prices.

The loss came after a profit of HK$2.58 billion over the same period last year, Cathay said in a statement.

The airline blamed the result on high jet fuel costs, which overshadowed a 22.6 per cent rise in turnover to HK$ 42.45 billion following a significant increase in both passenger and cargo revenue.

"Global aviation is making a painful adjustment to the new reality of US$100 plus oil," Cathay chairman Christopher Pratt said in the statement.

"Cathay Pacific is reducing other costs where it can, but there is a limit to how much cost can be saved before quality and brand are compromised," he said.

Passenger and cargo fares would have to rise to reflect the airline's new operational costs, but it was difficult to forecast whether that would hit still robust demand, Pratt added.

Fuel accounted for 45.3 per cent of total operating costs for the first half against 33.6 per cent over the same period last year, and Pratt said fuel surcharges approved by Hong Kong regulators fell far short of the higher bill.

The airline said it had also made a provision in its interim results for a US$60 million (US$1 = RM3.28) fine it has agreed to pay following a sweeping probe by American regulators into air cargo price fixing by a number of carriers.

Cathay and its subsidiary Dragonair flew 12.5 million passengers in the first six months of 2008, up nearly 14 per cent on 2007, and passenger revenue rose almost 22 per cent to HK$25.5 billion, the statement said.

The interim results follow warnings by analysts that high oil prices have sparked the biggest crisis in the Asian airline industry for years, with weaker carriers at risk of going under.

Upstart Hong Kong-based budget carrier Oasis has already folded this year, while other regional airlines have cut flights or closed routes in a desperate scramble to pare back costs.

A report yesterday said major Japanese carriers Japan Airlines and All Nippon Airways would become the latest to scale back by slashing domestic and international flights.

On Monday, the air travel industry body IATA said the number of people travelling by air grew at the lowest rate for five years in June as the global economic slowdown sapped demand.

Crude oil prices hit record highs above US$147 per barrel last month but have since fallen sharply to below US$120, although they remain high by the standards of recent history. - AFP
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Old September 13th, 2008, 08:58 AM   #1174
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^ That was covered in post 446 already.
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Old September 13th, 2008, 10:02 PM   #1175
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Old September 14th, 2008, 06:34 AM   #1176
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Old September 14th, 2008, 07:29 AM   #1177
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Old September 14th, 2008, 09:01 PM   #1178
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CAE wins contracts for four full-flight simulators and training devices valued at C$54 million
Press Release

Montreal, September 10, 2008 – CAE today announced it has been awarded contracts to design and manufacture four full-flight simulators (FFSs) and associated training devices valued at more than C$54 million at list prices. The contracts are with Cathay Pacific Airways, Southwest Airlines, Lufthansa Flight Training, as well as Flight Simulation Company. CAE has now announced a total of 18 FFS sales in fiscal year 2009.

“As the global airline industry continues to face a challenging business climate and a worldwide shortage of pilots, CAE is well-positioned to help airlines and third-party training centres meet their pilot training requirements with the industry’s most comprehensive portfolio of simulation products,” said Marc Parent, CAE’s Group President, Simulation Products and Military Training & Services.

Cathay Pacific Airways

CAE has sold a CAE 7000 Series Boeing 747-8 FFS to Cathay Pacific Airways. The Boeing 747-8 FFS is required to support pilot training in preparation for Cathay Pacific taking delivery of new Boeing 747-8 Freighter aircraft. The simulator will be delivered in 2010 to Cathay Pacific’s flight training centre in Hong Kong. In addition, Cathay Pacific has ordered a CAE Simfinity™ Integrated Procedures Trainer and CAE Simfinity Virtual Maintenance Trainer for the Boeing 747-8 aircraft.
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Old September 14th, 2008, 09:22 PM   #1179
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Old September 17th, 2008, 04:55 AM   #1180
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Redeployment is the key to fight high fuel costs for Cathay Pacific
16 September 2008
The Korea Herald

Hong Kong's flagship carrier Cathay Pacific was badly hit by high oil prices and suffered a net loss of $85 million in the first half of the year.

It was the carrier's first net loss since 2003, when the SARS epidemic hit the travel business across the Asian region.

When the fuel price is the biggest challenge for all airlines, the key to fight high fuel costs is to move aircrafts to routes with greater revenue potential from regions with less demand, the airliner's representative in Korea said. "Besides all the cost management, we're talking about the network of redeployment, putting aircrafts on the routes that make more money," said Lionel Kwok.

"We're constantly restudying where the revenue comes from and where the cost is."

For example, Cathay Pacific recently cut some U.S. flights and put more aircrafts on India, Australia and Middle East routes, where more demand is being generated, he said.

With the redeployment process, the carrier is also renewing fleets that are more fuel-efficient.

Despite the net loss in the first half, the total revenue rose 23 percent during the same period thanks to increased passenger and cargo demand, according to the company.

"In terms of revenue, our strategy is Hong Kong," Kwok said, emphasizing that the carrier is trying everything to attract as many travelers and business people as possible and promote Hong Kong as a stopover market.

The Hong Kong-born executive is eager to show the variety of Hong Kong's weekly magazines featuring fashion, celebrity, current affairs and IT gadgets to explain how quickly things are changing in the city.

The growing needs for the latest information on the newest consumer products is driving the carrier to lure customers to spend some time in the "shoppers' paradise," Kwok said.

Another attractive characteristic of Hong Kong is the variety of the food, as well as the people's great enthusiasm for it, he said.

"When we greet each other, we say 'have you eaten,' or 'where do you want to eat.' It's a routine in our language already," he said.

For Cathay Pacific, Korea is an important market as it is placed within the top 10 among the carrier's global markets in terms of revenue.

The airline increased Seoul-Hong Kong flights from four to five a day in 2006 to meet the growing passenger demand. For the last three years, the number of Korean and non-Korean passengers from Seoul to Hong Kong on Cathay Pacific grew 50 percent to 1,500 a day, Kwok said.

Along with the growing demand, the carrier plans to expand the number of Korean cabin crew by 150 from the current 240 this year. However, he made it clear that Cathay Pacific tries to mix all Asian nationalities in their flight attendants to meet customers' diverse demands.

Currently, Cathay Pacific operates Seoul-Hong Kong flights five times a day, and its affiliate Dragon Airlines carries passengers from Busan to Hong Kong once a day.
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