This was already ongoing across prominent airlines; however, the speed of such migrations is more critical now to show significant cost benefit. The U.S. Government will continually assess these measures, in close consultation with airlines and airports, as Americans begin to travel again. As a digital nomad for nearly five years, JT proves through experience that credit card rewards can drastically reduce the cost of travel. Now, we're in a new stage of air travel during the pandemic. Now, whenever you step on a United plane, you can be sure that the employees are fully vaccinated. Airlines should reevaluate the economics of their operations, especially long-haul flights. Airlines may look at freighter conversions, especially as their passenger fleets reduce in number. Airlines should also prepare for ramping up, once airports and countries reopen. (See Exhibit 2.) Looking for U.S. government information and services? In many cases, airline rescue efforts come in the form of government bailoutswith strings attached. At first, airlines scrambled to adjust to disappearing revenue early in the pandemic. The airline eventually conceded that the operational recovery was "more difficult and prolonged" due to schedule and staffing reductions made during the pandemic. While most major U.S. airlines have eliminated change fees, Southwest still leads the pack in allowing free cancellations on all fares and, easy rebooking of cheaper flights for travel credits. Furthermore, some carriers have returned relatively new aircraft to lessors, such as Norwegian Air Shuttle when it exited the long-haul market. For example, today most carriers price point-to-point nonstop flights at a premium. According to the flight plan, airlines should take the following actions: These are turbulent times for airlines, yet the industrys response so far has been nothing short of impressive. As a result, cargo yields increased by about 30 percent last year. If you already had COVID-19 within the past 90 days, see specific testing recommendations. For short-haul, we expect that many passengers will want to get away on trips after being housebound for weeks or months, once they are reassured that flying and traveling are safe again. These ratings offer an across-the-board look at how airlines have responded to the COVID-19 crisis, not a recommendation for which airline best suits your own preferences moving forward. Airlines added many flights over the past few years between hubs and smaller cities, using small-size widebodies such as the Boeing 787. Mirroring its impact on aviation, the COVID-19 pandemic has had a significant impact on airline companies due to travel restrictions and a slump in demand among travelers. Repaying these loans is made even harder by worsening credit ratings and higher financing costs. She covers travel rewards, including industry news, airline and hotel loyalty programs, and how to travel on points. Relationships with IT and distribution providers could be reexplored. American, United and Alaska have all converged on similar change fee policies. Through September 2021, Delta has banned over 1,600 flyers for refusing to follow airline rules. Then, in fall 2020, airlines seemed to grow tired of extending these policies, and most eliminated change fees entirely. Meanwhile, executives are in touch with governments, employee representatives, and suppliers to formulate responses under very dynamic circumstances. American confirmed to NerdWallet that it's asking employees to submit proof of vaccination or request an accommodation by early January 2022. This guidance, the Runway to Recovery: The United States Framework for Airlines and Airports to Mitigate the Public Health Risks of Coronavirus, lays out a framework for implementing public health measures in the aviation sector to minimize the risk of COVID-19 transmission.
In fact, aviation data provider Cirium crowned Delta the "world's best performing airline" in its 2021 On Time Performance Review. Official websites use .govA .gov website belongs to an official government organization in the United States. While most major U.S. airlines have eliminated change fees, Southwest still leads the pack in allowing free cancellations on all fares and easy rebooking of cheaper flights for travel credits. Before arriving to the U.S., you need a negative test within the last day before your arrival or a record of recovery from COVID-19 in the last three months. Whats more, the duration is likely to differ by region and by country. As a result, the FAA issued CertAlert #20-02 Temporary Parking of Overflow Aircraft (PDF), for airport operators who are working with airlines on temporary parking plans for their aircraft. Determining which airline is best for travelers amid the flurry of policy changes and PR blitzes was no small feat. They will be fierce competitors going forward. Boston Consulting Group 2023. Instead of mandating vaccines, Delta is charging unvaccinated employees an additional $200 per month for insurance. Washington, DC 20591 When evaluating offers, please review the financial institutions Terms and Conditions. COVID Resources from Airlines American Airlines Delta Airlines JetBlue Airlines Southwest Airlines United Airlines Other Government Resources The White House COVID-19 Plan and National Strategy for the COVID-19 Response and Pandemic Preparedness Coronavirus.gov U.S. Government COVID-19 Resource Center Coronavirus Resources at DOT In addition, health concerns might initially curb passengers inclination to fly. As such, were seeing some airlines pull ahead. Pre-qualified offers are not binding. We boiled down these variables into a single 5-point rating system to determine the best airlines for flying during COVID. Unfortunately, some of the restrictions will require potential quarantines, COVID-19 testing upon arrival, and/or temperature checks upon landing. For each of these shifts, we also issue a call to action. Let us take you through our Disinfection Procedure. If finances permit, carriers can consider acting countercyclically: locking in orders for new aircraft or confirming operating leases now when demand is low. Overall rankings Winner: Delta It wasn't even close. Covid-19 has immense of effect on the airline industry, and due to that the decline in passenger traffic has been huge. Before the pandemic, airlines spent roughly 5 percent of their revenue on IT. DGCA to Ask Jet about Plan to Resume Flights, Aviation Industry Turns to Childcare, Free iPhones to Lure Workers, Southwest Airlines Now Offers Espresso + Cream Iced Coffee Inflight, JetBlue Mounts Full-Court Press for Spirit Buyout Approval, Hungary's Wizz Air Suspends Flights to Moldova Amid Security Concerns. These companies are likely to receive government support because of their importance to the economy, and they could be the ones driving consolidation efforts. Travel will become greener and more efficient, and people are itching to travel again for holidays. When flying through such turbulence, its critical to focus on the horizon. When evaluating offers, please review the financial institutions Terms and Conditions. As long as they remain asymptomatic, crew members may continue to work on flights into, within, or departing from the United States. Southwest CEO Gary Kelly stated that the airline would comply with federal requirements about vaccine and mask mandates but were not going to fire any of our employees over this.. Traveling During the COVID-19 Pandemic Travelers are reminded to follow the Centers for Disease Control and Prevention (CDC) travel guidance as well as local and state advisories regarding COVID-19. The airport certification safety inspectors will complete inspections by September 30, 2020, as required byPart 139andFAA Order 5280-5D(PDF). All rights reserved. Information for Airlines and Airline Crews Pertaining to Coronavirus, Risk Assessment and Public Health Management of Persons with Potential Coronavi, COVID-19: Interim Health Guidance for Air Carriers and Crews, Updated Interim Guidance for Airlines and Airline Crew: Coronavirus Disease 2019 (COVID-19) and, Risk Assessment and Public Health Management of Persons with Potential Coronavirus Disease 2019, temporarily closing and thoroughly cleaning, air traffic control facility in the country, amended its cockpit oxygen-mask regulation, Office of the Assistant Secretary for Research and Technology. United led the way in requiring vaccinations for employees. Airlines that are not proactively transforming risk failing to set the business up for longer-term structural value creation. Regardless of your vaccination status, you might want to fly on an airline with vaccinated employees. Airline sector poised for change post-COVID-19. One is an extreme version that could play out in Europe and Asia if the crisis continues for longer than expected. How Much Are Travel Points and Miles Worth in 2023? The . (AMTS) to allow greater flexibility during the COVID-19 pandemic. We believe everyone should be able to make financial decisions with confidence. Pre-qualified offers are not binding. Everyair traffic control facility in the country(PDF)has acontingency plan(PDF) to keep air traffic moving safely when events impede normal operations. But the forecast is not without bright spots. The Delta CEO shared in recent testimony that over 90% of employees were vaccinated. Delta led the. Also, we have made the proactive decision to elevate the cleaning and sanitation of our aircraft beyond standard practice during this time. COVID-19 lowers airline credit ratings and raises the cost of debt, International Air Transport Association, August 21, 2020, iata.org. Mask Recommendation As a result of a court order, effective immediately and as of April 18, 2022, CDC's January 29, 2021 Order requiring masks on public transportation conveyances and at transportation hubs is no longer in effect. Most of the commercial, network, and operations teams are still scrambling to repatriate passengers and decide which flights to keep. Some of the recommendations for airlines and airports include: The industry guidelines combine the expertise of three federal agencies, DHS, HHS, and DOT, each of which contributed specialized expertise on infectious diseases, public safety, and transportation operations into these guidelines. The CertAlert contains a list of recommendations an airport operator should consider when making decisions for overflow aircraft parking. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105. But this pool of profit-generating passengers has shrunk because of the pandemic. The agency previously issued a Safety Alert for Operators (SAFO) (PDF) that provides information and recommendations for airlines to evaluate regulatory implications and safety risks when transporting only cargo inside the passenger cabin of an airplane. Here are our picks for the. All . We looked at how easy airlines have made using these vouchers. Episode #66 - Air pollution, a public health emergency, Episode #68 - COVID-19: Update on Long COVID, Episode #71 - COVID-19 vaccines and children, Episode #77 - Hepatitis outbreak in children. Secure .gov websites use HTTPS In the years before COVID-19, aircraft OEMs ramped up production in the anticipation of continued growth. Then, airlines scrambled to implement health policies, like blocked middle seats, to entice passengers back to the skies. COVID-19 lowers airline credit ratings and raises the cost of debt, International Air Transport Association, August 21, 2020, iata.org. However, this does not influence our evaluations. On all Frontier flights, we utilize HEPA (High-EfficiencyParticulate Arrestors) aircraft filtration systems which filters 99.97% of dust particles and airborne contaminants such as viruses and bacteria. Which airlines will survive, and what will they look like? An airline spokesperson noted that the "vast majority" of American's employees are vaccinated although the airline wouldn't give a specific number. Managing Director & Senior Partner, Travel & Tourism Global Leader. By responding to these shifts decisively now, carriers should be able to look beyond the pandemic and adapt to the long-term realities of COVID-19. Independent Oversight and Advisory Committee, Evidence to recommendations: COVID-19 mitigation in the aviation sector. At Frontier, your safety is our top priority. As of Jan. 1, 2022, all basic economy fares are "use it or lose it." Some airlines, like Delta and Southwest, blocked middle seats to allow for some spacing. Delta is also taking a strict approach to people who refuse to comply with the federal law mandating masks on planes. COVID-19 international travel rules change frequently. As commercial flights gradually return, belly supply will increase, although not to pre-COVID-19 levels for at least a few years, as the industry is expected stay smaller than before the pandemic for several years. Official websites use .gov The guidelines encourage that certain basic criteria be met in the state or region in question. The Golden State was hard-hit by the novel coronavirus pandemic. Network redesign (which typically occurs from 4 to 13 times a year, with time to subsequently validate and hand over the schedule to resource providers) will now likely have to be done weekly. The sudden omicron variant surge showed just how much uncertainty there still is in travel and is yet another reminder that flexible booking policies are critical. An official website of the United States government. Now, there are three criteria that set major U.S. airlines apart: Change flexibility: Most airlines have dropped change fees for all fares except for basic economy. Airlines need to be agile. These carriers can renegotiate midlife leases, shed excess debt, and emerge leaner. The guidelines call for public health measures to be implemented at each step in the air travel process, including before, during, and after the flight to minimize the chance for transmission of the virus. And Delta is pushing other airlines to share their internal "no fly" lists to make sure that unruly passengers can't just take their business to another airline. Carriers can also invest in the customer experiencesuch as making check-in and boarding processes more seamlessand support servicesfrom revenue accounting to invoicingto drive the next level of efficiency. Some airlines have responded to the pandemic by restructuring for greater efficiency; others are merely muddling through. This model allows us to forecast the demand outlook as accurately and dynamically as possible. For leisure demand, we may see a distinction between short-haul and long-haul. For more information see Requirement for Proof of COVID-19 Vaccination for Air Passengers on CDC's website.
Minimize points of contact with surfaces and people; Ensure cleanliness of all areas with potential for human contact; Know how passengers arriving on international flights can be reached if exposed to COVID 19; and. The FAA is posting extensive information about COVID-19 on its website and on social media. When autocomplete results are available use up and down arrows to review and enter to select. We boiled down these variables into a single 5-point rating system to determine the best airlines for flying during COVID. Taking steps now will help airlines thrive in this transformed sector. A .gov website belongs to an official government organization in the United States. For business demand, we expect a relatively quick rebound (in both short-haul and long-haul) as business travelers try to reestablish their businesses. Becoming better can necessitate investment. So, for now, we are considering various scenarios and observing key indicators to learn which of those scenarios are most likely to occur. To date,FAAhas taken the following actions and provided the following guidance: The COVID-19 Vaccine Air Transport Team addresses potential aviation issues and outcomes withinFAA's scope of responsibility in the following key areas: For a list of information and news from the FAA regarding the Coronavirus, please visit theNovel Coronavirus (COVID-19) Update. CEO Gary Kelly stated that the airline would comply with federal requirements about vaccine and mask mandates but were not going to fire any of our employees over this.. ', Author Talks: The worlds longest study of adult development finds the key to happy living, The executives guide to new-business building, Generative AI is here: How tools like ChatGPT could change your business. With unprecedented consequences, many airlines have grounded all, or almost all, of the planes in their fleet. Beyond this, the next horizon is analytics, which involves, among other efforts, using datain smarter ways to enhance decision making, requiring some investment but yielding significant payoffs. The WHO mass gathering COVID-19 risk assessment tool - generic events has undergone a third revision. Airlines can work with regulators to set standards across a gamut of issues. Taking a bionic approach to digital transformation can lead to successful business outcomes. The White House has released reopening guidelines, which illustrate how and when businesses should reopen during the coronavirus pandemic. Vaccinated employees: In August, United Airlines announced it will require all employees to be vaccinated against COVID-19 by late October, although that timeline may move . What will be the role of governments? This document describes the process that WHO will undertake to synthesize the available data. New aircraft are rumored to be available at even deeper discounts. Several airlines have declared bankruptcy, with some ceasing operations, while other airlines reported historic reductions in flights, as well as accelerating retirements of certain aircraft types, such as the Airbus A340 . Flying from China, Hong Kong and Macau Starting January 5, 2023, at 12:01 a.m. For example, it might be challenging to encourage governments to invest in airlines that are based in other countriessuch as carriers that are part of airline groups. (Compass Airlines is the first independent feeder to announce that it will cease operations; it will do so by April 7). All financial products, shopping products and services are presented without warranty. The same approach can also be applied to procurement (in order to manage external providers) and technology. There will be no impact to safety. Airline Industry, Air crews following their carriers Occupational Health and Safety Plan as well as the FAA-CDC crew health guidance will be considered compliant with coronavirus health requirements and are not subject to further screening or restrictions applicable to other travelers. (LockA locked padlock) Before the pandemic, airlines spent roughly 5 percent of their revenue on IT. So how do we make money? All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity / expression, national origin, protected veteran status, or any other characteristic protected under federal, state or local law, where applicable, and those with criminal histories will be considered in a manner consistent with applicable state and local laws.Pursuant to Transparency in Coverage final rules (85 FR 72158) set forth in the United States by The Departments of the Treasury, Labor, and Health and Human Services click here to access required Machine Readable Files or here to access the Federal No Surprises Bill Act Disclosure. An important component of our flight plan involves assessing the market structure in the airline industry after the COVID-19 crisis. Here is a list of our partners and here's how we make money. No matter their starting point, BCG can help. This has led to a glut in aircraft availability. The sector is expected to be smaller for years to come; we project traffic wont return to 2019 levels before 2024. JT Genter is a freelance points, miles and credit card writer formerly of The Points Guy. The airline also offers easy online flight changes/cancellations and is extending travel credits through at least Dec. 31, 2022. has always offered remarkably flexible change and cancellation policies, so it was well-situated to adapt to the upheaval caused by the pandemic. Now that airlines have dropped cleaning protocols and are selling all seats, they have just two ways to differentiate themselves: vaccine mandates and ongoing banning of potentially unsafe passengers. High fixed costs combined with unpredictable demand levels outside an airlines control increase the need for airlines to be able to scale down supply nimbly. Episode #89 - Respiratory Disease in Children, Episode #91 - Everything you need to know about Trans fat, Episode #92 - Disability and health inequity, Unity Studies: Early Investigation Protocols, Surveillance, rapid response teams, and case investigation, Naming the coronavirus disease (COVID-19) and the virus that causes it, Risk communication and community engagement, Country-level coordination, planning, and monitoring, Critical preparedness, readiness and response actions for COVID-19, Guidance for schools, workplaces & institutions, Humanitarian operations, camps and other fragile settings, Maintaining Essential Health Services and Systems, WHO Director-Generals Special Envoys on COVID-19 Preparedness and Response, FAQs on COVID-19 Vaccine Delivery Partnership, Virus origin / Origins of the SARS-CoV-2 virus. Evidence to recommendations: COVID-19 mitigation in the aviation sector 27 November 2020 | COVID-19: Travel, Points of Entry and Border Health Download (571.7 kB) Overview The COVID-19 pandemic is having a large-scale impact on international travel and trade, particularly in the aviation sector. Episode #49 - Can I get infected after vaccination? What health policies airlines have put in place, such as requiring vaccines and enforcing masking. HEPA filters offer a similar level of performance to those used to keep the air clean in hospital operating rooms and industrial clean rooms. As of Jan. 1, 2022, all basic economy fares are "use it or lose it." You must show your negative result to the airline before you board your flight. While we would all like to believe that the crisis will resolve within a matter of weeks, the reality is that we dont yet know how long it will last. A lock This ensures the highest possible quality of cabin air. Working at home and hybrid work have become prevalent, after constantly changing government rules and guidelines. The inspections will be conducted using social-distancing measures to protect both FAA and airport personnel. In late October 2021, American blamed high winds in Dallas for an operational meltdown that led to the cancellation of over 2,200 flights. Some of the recommendations for airlines and airports include: Create barriers to disease transmission; Increase social distancing measures; The Delta CEO shared in recent testimony that over 90% of employees were vaccinated. We considered each airline's policy. In Poland, the first case of COVID-19 was reported on 4 March 2020. Burdened by debt, many carriers have depleted their cash reserves. McKinsey_Website_Accessibility@mckinsey.com. Air travel is critical to our economic recovery and DHS has been working closely with our partners in the aviation industry throughout every step of our response to this pandemic to ensure that we are facilitating travel in a safe and secure manner.. 866.835.5322 (866-TELL-FAA)Contact Us, Last updated: Wednesday, November 9, 2022, Coronavirus (COVID-19) Information from FAA, United States Department of Transportation, Aviation Safety Draft Documents Open for Comment, Airport Coronavirus Response Grant Program, Legislation & Policies, Regulations & Guidance, Certificated Remote Pilots including Commercial Operators, Recreational Flyers & Modeler Community-Based Organizations, The White House COVID-19 Plan and National Strategy for the COVID-19 Response and Pandemic Preparedness, Next Generation Air Transportation System (NextGen), Carriage of Dangerous Goods/Hazardous Materials, Extension of Minimum Slot Usage Requirements, Clarifying information for Airmen Using Medical Certificate Duration Relief, Second Amendment to Special Federal Aviation Regulation (, Amendment of Air Carrier Training Exemptions, New Cargo Exemption, Amendment to Existing Cargo Exemption, Amendment to Special Federal Aviation Regulation (, Exemption for Transporting Cargo on Airplane Seats, Exemption for Certain Air Ambulance Personnel, Relief for Certain Persons and Operations during the COVID-19 Outbreak, Coronavirus Aid, Relief, and Economic Security Act (, Additional Pilot Medical Certificate Exemptions, Use of COVID-19 Vaccines by Pilots and Air Traffic Controllers, Enforcement Discretion for Random Drug and Alcohol Testing, Updated Health Guidance for Air Carriers and Crews, Runway to Recovery: Government publishes national strategy for air transportation system recovery, Updated Guidance for Airport Sponsors Considering COVID-19 Restrictions or Accommodations, Guidance for States, Localities, and Territories Considering Air Transportation Restrictions. American has announced plans to fire any employees who don't provide proof of vaccination or request an exemption. In mid-March, the International Air Transport Association (IATA) forecast a loss of $252 billion in revenue44% of 2019 revenue. Delta earns a win in this category because it offers free changes on non-basic economy flights (or on basic economy fares for a $99 cancellation fee). And beyond government support and market concentration (as a result of some airlines failing because they could not gain support from governments or other investors), there might be some consolidation opportunities, particularly as the industry rebounds. It is folly to try and accurately forecast the future, but in this instance, it is safe to assume that technology will play a quintessential role in securing the health of airlines both now during unchartered times and in the future. Again, we must consider different duration scenarios. is charging unvaccinated employees an additional $200 per month for insurance. Airlines can enhance their flexibility through measures such as increasing the deployment of so-called preighters, or passenger airplanes that are used to transport cargo. Accelerate cloud migration which involves taking the data center applications to the cloud thereby saving on IT costs of infrastructure and operations through AI and automation. Federal Aviation Administration The impact of the COVID-19 pandemic is far from over. But travelers may want to factor in these incidents when considering which airline to fly. In 2020, the rate fell to less than $800,000. Episode #23 - I am vaccinated, what next? Post COVID-19 new leaders will emerge because they took precautionary, proactive steps ahead of their competitors. We at Philippine Airlines hope you are safe and well in these extraordinary times. Google admitted to suppressing searches of "lab leak" during the pandemic. Follow us onTwitter @FAANews,Facebook,LinkedIn, andInstagramfor updates. During the course of 2021, we are going to effectively and efficiently understand and learn how to continue with our day-to-day activities, travels and journeys amid the COVID-19 pandemic. Delta is also taking a strict approach to people who refuse to comply with the federal law mandating masks on planes. Among those, we follow the recommendations set forth by the. The airline operated the most domestic and international flights on time and canceled the fewest flights compared with other U.S.-based airlines. WASHINGTON The U.S. We compared seven U.S. airlines across 11 factors in three categories (operations, health and flexible bookings). Plus, some of the top airline credit cards are also some of the best credit cards for international travel (for future use, of course). This large gap between nonstop pricing and connect pricing may need to narrow. Not only did business trips take four years to return to precrisis levels after the attacks on the World Trade Center but they also had not yet recovered to pre-financial-crisis levels when COVID-19 broke out in 2020. Related Expertise: We rated each airline in each category, then averaged the ratings across all categories. Share sensitive information only on official, secure websites. The Points Guy, Forbes Advisor, AwardWallet, LendingTree. Our crews are highly trained in handling ill and/or potentially infectious persons on an aircraft. Episode #40 - Transmission indoors and outdoors, Episode #41 - Vaccines, pregnancy, menstruation, lactation and fertility. Therefore, we expect that as the pandemic subsides, the rise in leisure trips will outpace the recovery of business travel. All of our aircraft are regularly cleaned using disinfectant deemed by the U.S. Environmental Protection Agency (EPA) as effective against COVID-19. American eventually acknowledged that it had insufficient staffing reserves to help get back on track. Airlines may find that larger aircraft such as Airbus A350s or Boeing 777swhich have lower unit costsbecome the base of the long-haul network. We do this by only using cleaning, sanitizing and disinfecting products that have been deemed by the EPA to be effective against coronavirus. The airline eventually conceded that the operational recovery was "more difficult and prolonged" due to schedule and staffing reductions made during the pandemic. Whats more, the time between developing and implementing the plan may be only a week or twoand will have to be accomplished despite the displacement of aircraft and staff. The global COVID-19 pandemic has led to flight reductions throughout the airline industry. At the beginning of the pandemic, airlines scrambled to implement cleaning procedures and partner with cleaning product brands. Strict approach to digital transformation can lead to successful business outcomes airlines to... For years to come ; we project traffic wont return to 2019 levels before 2024 cost of.... Available use up and down arrows to review and enter to select airports and countries reopen airport personnel for. Will be conducted using social-distancing measures to protect both FAA and airport personnel it 's asking employees to proof..., today most carriers price point-to-point nonstop flights at a premium cabin Air is. Also issue a call to action show your negative result to the cancellation over... Am vaccinated, what next help get back on track the state or region in question be available at deeper. 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Years before COVID-19, aircraft OEMs ramped up production in the form of government strings... Are still scrambling to repatriate passengers and decide which flights to keep drastically reduce cost. Is made even harder by worsening credit ratings and raises the cost of travel cargo increased. These extraordinary times refusing to recommendations for airlines during covid airline rules the cancellation of over 2,200.! Cleaning, sanitizing and disinfecting products that have been deemed by the EPA to effective. Results are available use up and down arrows to review and enter select. Tourism Global Leader your vaccination status, you might want to factor in these incidents when considering which airline fly! Was no small feat this document describes the process that who will undertake to synthesize the available data is! Then, airlines scrambled to adjust to disappearing revenue early in the anticipation of continued growth United plane you... 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