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KarelXWB
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ET To Add Additional A350s

Wed Nov 11, 2015 2:50 pm

Ethiopian Airlines plans to purchase at least another 10 A350-900 jets in the nearby future.

Quote:
Ethiopian Airlines plans to place orders for at least 10 Airbus A350-900 aircraft in the next two years, in addition to the 14 already on order, its chief executive said on Wednesday.

"We haven't been able to quantify the right numbers but definitely we are going to order more. At least more than 10," Tewolde Gebremariam told Reuters in an interview.

Source
http://www.reuters.com/article/2015/...ia-ethiopian-idUSL8N1363S820151111

This comes on top of the latest 777-8 order.

[Edited 2015-11-11 06:58:01]
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a380787
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 2:54 pm

Sounds like ET is really positioning themselves to be the premier African carrier, possibly even challenging the leadership of MS and SA.

After the recent unfortunate mishap in SSH, even though it wasn't remotely related to MS, I expect their traffic volume to take a short-to-medium term dive as passengers shy away from anything related to Egypt (both as a destination and as a transit point). This would allow SA RAM and ET to catch up to them.
 
SpaceshipDC10
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 2:56 pm

They are really in need of long-haul aircraft.

Quoting KarelXWB (Thread starter):
Ethiopian Airlines plans to purchase at least another 10 A350-900 jets in the nearby future, bringing the fleet to 24.

Well in fact the fleet will be more than 24 since they plan to order more than 10 additional A359s.
 
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Polot
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 2:59 pm

Quoting a380787 (Reply 1):
Sounds like ET is really positioning themselves to be the premier African carrier, possibly even challenging the leadership of MS and SA.

ET has long since passed MS and SA to be the premier African carrier. They are just further cementing their lead.
 
speedbird128
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 3:18 pm

Quoting a380787 (Reply 1):
possibly even challenging the leadership of MS and SA.

Nothing to challenge wrt SA. They are totally lost in the midst of wholesale corruption and lack of leadership of any form on any level.
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Stitch
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 3:48 pm

And before someone asks "maybe these will be A350-900ULRs and they will cancel the 777-8s", ET is going to need the performance of the 777-8. As such, I expect these 10+ A350-900s to be standard models like the ones currently on order.
 
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 4:00 pm

Quoting speedbird128 (Reply 4):
Nothing to challenge wrt SA. They are totally lost in the midst of wholesale corruption and lack of leadership of any form on any level.

Left aside they are to be neglected as transit airline.
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 4:04 pm

Too fast too soon is my first thought, I hope to be proven wrong, but I can't see ET being ready for the current expansion drift.
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behramjee
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 4:16 pm

Quoting Stitch (Reply 5):
And before someone asks "maybe these will be A350-900ULRs and they will cancel the 777-8s", ET is going to need the performance of the 777-8. As such, I expect these 10+ A350-900s to be standard models like the ones currently on order.

yes true and I wont be surprised if few of these wide bodies end up in the hands of their other franchise carriers in Africa or any additional future investments such as Congo.
 
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scbriml
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 5:41 pm

Good news for ET. However, they certainly need that new airport before they get all these new planes. ADD is a transit passenger's worst nightmare.
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astuteman
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 6:40 pm

Quoting Stitch (Reply 5):
And before someone asks "maybe these will be A350-900ULRs and they will cancel the 777-8s", ET is going to need the performance of the 777-8. As such, I expect these 10+ A350-900s to be standard models like the ones currently on order.

Again, I'm struggling to see why an airline that needs long-haul/hot and high lift, like ET, can't operate 778's AND A359LR's side by side.

Isn't it a bit of a shame if every long haul/hot and high sector you have HAS to be operated by a 350t aircraft, irrespective of the market size?

Rgds
 
ETinCaribe
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 7:02 pm

Wow, did not see this one coming. Great news for ET and Airbus. One could have easily confused ET for Boeing's marketing department, they were such a loyal customer. Congrats to both for creating a product that best responds to the customer's needs (Airbus) and for objectively looking at all options on the table (ET).

Quoting a380787 (Reply 1):
After the recent unfortunate mishap in SSH, even though it wasn't remotely related to MS, I expect their traffic volume to take a short-to-medium term dive as passengers shy away from anything related to Egypt (both as a destination and as a transit point).

Yes, this is very sad for MS, as the Egyptian economy was getting back on its feet, this event comes along, further complicating their recovery.

Quoting DALCE (Reply 7):
Too fast too soon is my first thought, I hope to be proven wrong, but I can't see ET being ready for the current expansion drift.

Good point, ET as a group is investing in many things. One such example is the human capital development with a vastly expanded training center. I think they are ready and most importantly will know to handle issues once they arise.

Quoting DALCE (Reply 7):
I wont be surprised if few of these wide bodies end up in the hands of their other franchise carriers in Africa or any additional future investments such as Congo.

I agree, I fully expect some of these planes (including 7x7s) to find their way to ASKY and the yet to be formed Congolese subsidiary. Not sure if there are restrictions but they could potentially use the same planes to do for instance: ADD-BRU, BRU-FIH-BRU, BRU-ADD so doing BRU-FIH-BRU instead of parking the plane at BRU for 12 hrs.

I have long advocated creating a single brand (like ASKY) and creating separate ownership structures in each country, if need be, the same way LAN has LAN Ecuador, Colombia, Peru, etc. That way, the same brand, look-and-feel and back office can be shared across the entities.

Quoting scbriml (Reply 9):
However, they certainly need that new airport before they get all these new planes. ADD is a transit passenger's worst nightmare.

True, the current airport is currently being expanded. I agree with you, until that is done and operational, transit through ADD will be a mess.
 
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scbriml
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 8:00 pm

Quoting astuteman (Reply 10):
an airline that needs long-haul/hot and high lift

I thought I'd read that the new airport is some distance from Addis and a lot lower altitude than ADD? Perhaps I imagined it.

Perhaps not:
http://centreforaviation.com/profile...-addis-ababa-international-airport

No mention of altitude in that report, but I'm sure I'd previously read that part of the driver for an airport between 37 & 44 miles from Addis was the fact it would be lower.
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Stitch
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 8:02 pm

Quoting astuteman (Reply 10):
Again, I'm struggling to see why an airline that needs long-haul/hot and high lift, like ET, can't operate 778's AND A359LR's side by side.

Side-by-side, sure.

My comment was about cancelling their existing 777-8 order in favor of an A350-900ULR order.
 
SelseyBill
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 8:27 pm

Quoting scbriml (Reply 9):
Good news for ET. However, they certainly need that new airport before they get all these new planes. ADD is a transit passenger's worst nightmare

and in 'other news'........

================================================================================================================================================================================================
The United Nations has warned that more than 15 million people in Ethiopia will be in need of food aid by the beginning of 2016 because of a severe drought. A lack of rain has meant that crop yields in the worst-affected areas are down by 90% this year.
The Ethiopian government has set aside nearly £130m to deal with the crisis but the UN says a further £330m is needed. Clive Myrie reports from Kobo in northern Ethiopia.

Source: BBC
================================================================================================================================================================================================


........ now I understand completely why Ethiopia would want to improve its lot by growing its economy through a succesful airline; but this to me seems like ET wanting to become a 'mini-EK' in north-central Africa, at a time when it seeks billions in international aid to feed and water its people.

Has Ethiopia got its collective priorities right here ?
 
speedbird128
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 8:38 pm

Quoting SelseyBill (Reply 14):
........ now I understand completely why Ethiopia would want to improve its lot by growing its economy through a succesful airline; but this to me seems like ET wanting to become a 'mini-EK' in north-central Africa, at a time when it seeks billions in international aid to feed and water its people.

Has Ethiopia got its collective priorities right here ?

Exact same could be said for south africa. Millions living in poverty while the big boss buys a 4 billion rand new jet.
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seabosdca
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 8:49 pm

Quoting SelseyBill (Reply 14):
but this to me seems like ET wanting to become a 'mini-EK' in north-central Africa, at a time when it seeks billions in international aid to feed and water its people.

How does ET growing hurt the Ethiopian people? It is a profitable business, even though it is owned by the government. This is not an AI situation where the government keeps having to pour endless funds down a rat hole.
 
dare100em
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 8:50 pm

Quoting SelseyBill (Reply 14):
Has Ethiopia got its collective priorities right here

Better to try SOMETHING - like developing an Airline - than NOTHING at all.

Anybody with even a remote understanding knows that just cancel the investment e.g. in ET won't help the situation one bit in the medium run. It is like it is. The most beautiful poems are written on an empty slate.
 
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 9:03 pm

Quoting SelseyBill (Reply 14):

and in 'other news'........

================================================================================================================================================================================================
The United Nations has warned that more than 15 million people in Ethiopia will be in need of food aid by the beginning of 2016 because of a severe drought. A lack of rain has meant that crop yields in the worst-affected areas are down by 90% this year.
The Ethiopian government has set aside nearly £130m to deal with the crisis but the UN says a further £330m is needed. Clive Myrie reports from Kobo in northern Ethiopia.

Source: BBC
================================================================================================================================================================================================


........ now I understand completely why Ethiopia would want to improve its lot by growing its economy through a succesful airline; but this to me seems like ET wanting to become a 'mini-EK' in north-central Africa, at a time when it seeks billions in international aid to feed and water its people.

Has Ethiopia got its collective priorities right here ?

How is building a successful business wrong priorities? Are they suppose to feed their people by staying a planetary welfare case?
Anon
 
airbazar
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 9:12 pm

Quoting SelseyBill (Reply 14):
Has Ethiopia got its collective priorities right here ?

And in other news...
=================================================================
The proportion of people in persistent income poverty in the UK in 2013 was 7.8%, equivalent to 4.6 million people, compared with 9.6% in the EU as a whole.

OR

UK has 2.3m children living in poverty, government says
http://www.bbc.com/news/uk-33266799
==================================================================

So are you advocating that the UK should confiscate a BA's profits to improve the poor's living conditions?

Manny

[Edited 2015-11-11 13:13:59]
 
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rotating14
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 9:43 pm

Quoting SelseyBill (Reply 14):
The United Nations has warned that more than 15 million people in Ethiopia will be in need of food aid by the beginning of 2016 because of a severe drought. A lack of rain has meant that crop yields in the worst-affected areas are down by 90% this year.
The Ethiopian government has set aside nearly £130m to deal with the crisis but the UN says a further £330m is needed. Clive Myrie reports from Kobo in northern Ethiopia.

Source: BBC

With a person with as much zest about poverty, drought, and lack of rain, I can assume that you have boots on the ground and are helping feed these people through donations and/or your time.

Quoting SelseyBill (Reply 14):
........ now I understand completely why Ethiopia would want to improve its lot by growing its economy through a succesful airline

mmmm I don't think that you do. Of 7 continents on the globe, this airline has the ability to be the biggest and the best airline in all of Africa. Why would they just sit around and do nothing??

Quoting SelseyBill (Reply 14):
but this to me seems like ET wanting to become a 'mini-EK' in north-central Africa, at a time when it seeks billions in international aid to feed and water its people.

ET fly narrow body aircraft, EK does not. ET is just trying to grow its business, just like EK, NH, DL and LH. It's a business, not a charity. Due to its proximity to DXB , it would seem that way. But with air traffic growing year over year, there's enough room for ET to grab market share.
 
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Stitch
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 9:51 pm

Perhaps discussions on Ethiopia's priorities as an airline and a country could go to Non-Av so we can focus on the intended orders themselves?
 
slowrambler
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 10:39 pm

I second the motion that the concern trolling about Ethiopia's budgetary priorities be moved somewhere else. They are irrelevant to the fleet decisions of a (profitable!) airline, and ET probably does more for Ethiopian and African development than any number of first-world hand wringers.
 
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 10:46 pm

Quoting scbriml (Reply 12):
No mention of altitude in that report, but I'm sure I'd previously read that
part of the driver for an airport between 37 & 44 miles from Addis was the fact it would be lower.

I think it was the article below that you read?

Quoting meleszenawi.com:

Previously, the enterprise was conducting a study on a location near Dukem town, some
30 km east of Addis Ababa. However, this was revoked and the enterprise is now contemplating
to build the new international airport between Modjo and Meki towns on Hawassa road.
An independent aviation expert told The Reporter that the new location is chosen because of
its low latitude. “As the altitude decreases, aircraft’s fuel consumption decreases, especially
during take off. At lower altitudes aircraft take off load increases,” the expert said.
“Modjo is an ideal location.”
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ttm
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 11:19 pm

The situation of KQ shows how a rosy growth outlook can quickly turn sour. Could the rapid expansion of ME3 plus TK in Africa not curtail ET growth in markets between Africa on the one hand and Middle East, Asia, Europe and North America on the other, rendering the now large orders of 788s and 359s excessive?
 
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seabosdca
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RE: ET To Add Additional A350s

Wed Nov 11, 2015 11:36 pm

Quoting ttm (Reply 26):
The situation of KQ shows how a rosy growth outlook can quickly turn sour.

To date, Addis Ababa has not had the security challenges of Nairobi.

As long as that remains true, given the population of the areas served by ET, and their rapidly developing economic status, I think the sky is the limit for ET growth. They are smartly adding flexible aircraft (narrowbodies, 787-8, and A350-900), trying to build a network rather than dominate every route.

If Africa growth continues to be robust over the next couple of decades then intra-Africa business alone could begin to resemble a US major in scale.
 
ETinCaribe
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RE: ET To Add Additional A350s

Thu Nov 12, 2015 2:23 am

I will respect the A.net rules and stick to aviation only, though I would have loved to respond some of the comments. Let me just say three words: El Nino effect.

Anyway, one big misconception about ET is that it is bankrolled by the Ethiopian government. Biggest fallacy. ET is a completely independent company that gets exact ZERO cents from the government. One of the many things that ET drills into each employee is to be frugal as they will not get a bailout from the government: no plan B, make Plan A work!! All the aircraft purchases are done on ET balance sheets, they have been profitable for 70 years (except one year) and by the look of it, they still don't have problem getting loans on the international market.

With the US EXIM re-authorization being stuck in the US congress, the borrowing cost for financing Boeing planes will go up. Who knows, maybe ET will elect to switch its orders to Airbus if it can get very attractive financing.

Bottom line, ET is a net contributor to Ethiopia's development, an engine of growth for the economy and positive image production machine. (and yes, I am biased!!)
 
PlanesNTrains
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RE: ET To Add Additional A350s

Thu Nov 12, 2015 3:30 am

Quoting nomadd22 (Reply 18):
How is building a successful business wrong priorities? Are they suppose to feed their people by staying a planetary welfare case?

Hopefully at the end of the day the airline is a catalyst for economic growth. I don't know how much ET affects the greater Ethiopian health or what affect it's had in helping the country as a whole move forward, but I'd imagine that at least in Addis Ababa it's made a big difference.

Quoting rotating14 (Reply 20):
With a person with as much zest about poverty, drought, and lack of rain, I can assume that you have boots on the ground and are helping feed these people through donations and/or your time.

Non sequitor.

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-Dave


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EPA001
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RE: ET To Add Additional A350s

Thu Nov 12, 2015 10:38 am

Quoting KarelXWB (Thread starter):
This comes on top of the latest 777-8 order.

Wow, they are on impressive expansion course.   I did not expect this announcement although they are not firm orders yet. Especially after ET ordered the B778.
 
Amexair
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RE: ET To Add Additional A350s

Fri Nov 13, 2015 2:18 am

Quoting ETinCaribe (Reply 28):

I will respect the A.net rules and stick to aviation only, though I would have loved to respond some of the comments. Let me just say three words: El Nino effect.

Anyway, one big misconception about ET is that it is bankrolled by the Ethiopian government. Biggest fallacy. ET is a completely independent company that gets exact ZERO cents from the government. One of the many things that ET drills into each employee is to be frugal as they will not get a bailout from the government: no plan B, make Plan A work!! All the aircraft purchases are done on ET balance sheets, they have been profitable for 70 years (except one year) and by the look of it, they still don't have problem getting loans on the international market.

With the US EXIM re-authorization being stuck in the US congress, the borrowing cost for financing Boeing planes will go up. Who knows, maybe ET will elect to switch its orders to Airbus if it can get very attractive financing.

Bottom line, ET is a net contributor to Ethiopia's development, an engine of growth for the economy and positive image production machine. (and yes, I am biased!!)

I couldn't have said it any better.

Quoting KarelXWB (Thread starter):
This comes on top of the latest 777-8 order.

I'd like to point out that the 777-8 is not a firm order and ET is currently on final stages of evaluation with a likely order due anytime soon. I do believe that the resent issue with the US EXIM bank renewal will have an effect on ET's decision for their long haul fleet expansion plans. I do see a tendency on ET to lean more to Airbus if financing is made easily available.

Overall, congrats on ET for achieving this new milestone. I think its about the right time to diversify their fleet given their quite extensive fleet size now.
 
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AirlineCritic
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RE: ET To Add Additional A350s

Fri Nov 13, 2015 2:34 pm

I am happy about ET's success, and hoping it will bring more prosperity to the region, and of course, more flying and better connections.

And today they have decided to bring some great planes onto the continent. Well done!
 
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Stitch
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RE: ET To Add Additional A350s

Fri Nov 13, 2015 2:40 pm

Quoting Amexair (Reply 29):
I'd like to point out that the 777-8 is not a firm order and ET is currently on final stages of evaluation with a likely order due anytime soon.

And ET's CEO has said that evaluation has concluded that the 777(X) over the A350 so it's pretty safe to say the 777-8 order is going to go through.



Quoting Amexair (Reply 29):
I do believe that the resent issue with the US EXIM bank renewal will have an effect on ET's decision for their long haul fleet expansion plans. I do see a tendency on ET to lean more to Airbus if financing is made easily available.

While the EU does have their own version of EX/IM, the EU airlines have been following their US counterparts in also complaining about how such governmental-level financial support has allowed non-EU airlines (like the ME3) to load-up on Airbus planes that are then deployed against them in the EU market.

And Boeing has their own internal financing arm that they can deploy if EX/IM support is not forthcoming.
 
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KarelXWB
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RE: ET To Add Additional A350s

Fri Nov 13, 2015 2:45 pm

EXIM Bank should not be an issue, ET will find other financial resources as they did with their latest 777 freighter:

http://www.reuters.com/article/2015/...opian-airbus-idUSL8N1363UL20151111

Quote:
"It has affected one of our freighters - a freighter aircraft (Boeing) 777 which we took delivery in December. We had to find a bank to finance that. Fortunately we got one so we are okay," he said.
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