Air Serbia posts strong operational results


Air Serbia has published its operational results for 2019 with the airline handling the most passengers in a single year since its relaunch in 2013. The carrier welcomed a total of 2.81 million travellers on scheduled and charter flights from its hub in Belgrade. Passenger numbers increased 9.5%, compared to 2018, with the airline accounting for 45.6% of all travellers passing through Belgrade Airport. Air Serbia increased its passenger numbers on scheduled flights by 9%, and 23% on charter services compared to the previous year. During 2019, Air Serbia ran a total of 33.322 flights, 2.370 of which were charters operated by Aviolet, its dedicated leisure brand. Network capacity, measured in Available Seat Kilometres (ASK), rose to 4.45 billion. The average cabin load factor stood at 72%, while sales of ancillary services grew 28%.


Air Serbia's CEO, Duncan Naysmith, said, “In 2019, we delivered the largest network expansion and carried the most passengers since we started operations as Air Serbia. By launching new flights from as many as three airports in Serbia, we have confirmed our position as a regional leader in the sphere of commercial aviation and given our contribution to the development of business and tourism in Serbia, as well as regional interconnectivity". He added, "During the previous year, we carefully selected new destinations, further improving the integration of our international network and providing our guests with more choice and more benefits". During 2019, Air Serbia launched ten new destinations from Belgrade, twelve new services from NiΕ‘, where it also opened a base, and one new route from Kraljevo.

Commenting on its plans for 2020, the airline recently said, "We are working hard on making the next twelve months even better for our guests. A solid foundation and a strong wind in our sails have been provided by these results”. The carrier plans to introduce ten new routes during the upcoming summer season, increase capacity by 18% and boost frequencies on existing services. On the financial front, Air Serbia is required to submit its 2019 results to the Serbian Business Registers Agency by July 2020, after which they will be made public following their review. In 2018, the airline posted a 12.2 million euro profit.




Comments

  1. Brilliant results. Do we know how much was their total revenue in 2019? The more it grows the closer they will come to the point of breaking even especially since their costs have been taken care of.

    ReplyDelete
    Replies
    1. But they are already profitable!
      "In 2018, the airline posted a 12.2 million euro profit"

      Delete
    2. How much profit did they make excluding government subsidies?

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    3. Did you ask the same Croatia Airlines and Aegean?

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    4. Montenegro subsidies win the race. Also, Wizz has been receiveing them for years in SKP...

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    5. Just because others are doing the same, it doesn't make JU profitable in real life.

      Sure, looks nice on paper...

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    6. It levels the playing field. JU is just better than others at using the money to expand.

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    7. Airserbia's financial stetements are a complete joke, until it uses/needs taxpayer's money to look profitable.

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    8. Absolutely same happens it Air Serbia's surrounding.

      No need to be bitter. They do at least something with that money

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    9. Were Adria financial reports any better? Or Croatia's? Or Montenegro airlines, LOL, I am laughing now how tragic their report is. Ignoring millions poured into Wizz year after year in SKP, TZL, BUD... Why are you MIA when it comes to them and their subsidies? This simply discards you as neutral and objective observer. Just pure jealousy against Air Serbia. We had too many of those unable to deal with JU success to even pay attention to your hate. Learn to deal with Air Serbia growth and success or seek help.

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    10. How about we compare it to IAG, LH, or perhaps EZY or RYR?

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    11. How about we get Merkel to fly to AUH to help Air Serbia instead of LH when Air Berlin was down? How about we get Germany to lean on EC in favour of Air Serbia instead of LH for a change? How about that?

      Delete
  2. Hopefully an even better 2020.

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  3. 2.8 million including Nis passengers? Because in the articles it says it handled 2.8 m from its hub in Belgrade? What about Nis?

    ReplyDelete
    Replies
    1. Like the article says it does not include Nis passengers. The airline only gave passenger result information for Belgrade for whatever reason.

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    2. Could be that INI flights have lower LF and would thus negatively influence overall results

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    3. Only the passenger numbers do not include Nis. The rest do.

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    4. I am sure if they put INI and BEG numbers together people would claim they did it to mask bad results in INI. lol

      INI is not part of their core business plan, it was an idea of the government so they classify it separately.

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    5. They should post INI results separately, but simultaneously.

      Delete
  4. Even with new destinations and increases in capacity, JU managed to slightly improve its LF. In 2018, JU`s LF was 71.2% and in 2019 it was 72%...

    My guess is that with the addition of another ten destinations and increases in frequencies across the board, JU will not see any major increase in LF in 2020... My wild guess is that anything above 75% would be incredibly positive outcome

    Nonetheless it will be setting the groundwork for future increase in pax numbers on already developed routes once new additions settle in and develop properly.

    ReplyDelete
    Replies
    1. Don't forget that H1 2019 was pretty much bad, business as usual. Would be great to compare H2 LFs of 2018 and 2019.

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    2. Thats`s true, yet for 2020 we will see real increase... In H1 of 2020 we will see increase as the results of last year`s summer expansion, while in H2 of 2020 growth will be driven by this year`s summer expansion...

      Unless in 2021 they have another major wave of expansion, we will be able to see organic growth of JU on existing routes

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    3. I hope that in 2021 they grow organically. I think they should focus on KRR as it seems it's one destination where TK isn't doing that well. In winter they operate five weekly flights with a mix of A319 and B738!

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    4. Loadfactor is irrelevant if you do not need to worry about profitability.
      Under normal circumstances airlines need to have over 80% year round loadfactors to at least cover expenses.

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    5. According to many media reports INI loads are a desaster, better not include them in the numbers...

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    6. And how did you come to that magical 80% since costs vary from airline to airline? Also an airline can still fly full planes and lose millions. For example at one point Air Berlin had a LF of 86% yet they were still losing millions of Euros.

      Delete
  5. 45% passenger share at BEG isn't huge so they really can't be called a monopolist. Other ex-Yu airlines have a bigger share at their home airports.

    ReplyDelete
    Replies
    1. Used to be 55% 5 years ago

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    2. 45% not too much? LOL
      Reminds us of SKP where W6 is practically everywhere.
      Just shows how little the rest of the carriers are contributing.

      45% - JU
      25% - W6

      Incredible!

      Delete
    3. I don't know what you are talking about because your comment makes absolutely no sense. Wizz Air has an 80% share in Skopje. In Belgrade it does not have a 25% share (if that was supposed to indicate their share in Belgrade)

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    4. I also don't understand what he is on about.

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    5. That only 2 airlines make a share of more than 75% in BEG. Still very difficult to create.

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    6. The only issue is that Wizz Air's share is not 25% so...

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    7. So you are surprised that two airlines that are based in BEG make up 70% of the total market? What's so strange about that? In Vienna, Austrian Airlines has a marketshare of around 42%.

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    8. And by the way, for an airline to have a significant share of the traffic at an airport they must have multiple daily flights. How many airlines have more than three daily flights to BEG on a year-round basis? Many airlines fly to Belgrade but what they lack is frequency.

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  6. It also shows other airlines seem to be doing quite ok in BEG which is great to hear. What is impressive is that growth in BEG has been mostly fuelled by legacies.

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  7. Good job JU... regardless of anything people say on here it was a good year.

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  8. I am more than confident that the airline will pass 3 million this year.

    ReplyDelete
    Replies
    1. 3 mil pax is granted.

      Delete
    2. Seems like it will be a good charter season so numbers should be between 115.000 and 120.000. What's great is that JU is not only introducing new destinations but consolidating existing ones. I am especially happy Prague is back at 10. CSA is a mess so there is more potential for transfer passengers.

      Delete
    3. if they increase capacity by 18% they will at least have 15% of pax growth which pushes them closer to 3.3 million...

      My guess is that JU will countribute to BEG by around 400.000 to half a million new pax in 2020. With additions from foreign carriers, 7 million might not be unachieveable

      Delete
  9. Great job operationally, let's see how they did financially.

    ReplyDelete
    Replies
    1. I am sure they would be profitable again in 2019 like they were in 2018!

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    2. Their finances perform better each year.

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  10. A page on long haul expansion fell out from the slide deck once again.

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    Replies
    1. Hopefully that comes back on the docket in 2021... They did create a respectable base from which they can add destinations like OHR, YYZ, PEK, PVG

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    2. And for the better!!

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    3. No, for the worse. Bigger and stronger Air Serbia means there are less excuses available for not expanding long haul.

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  11. I don't want to be negative, these results are impressive and deserve praise.

    But I'm afraid that current global situation, specifically the corona virus will be a major disruption to the economies and aviation industry as well.

    Major airlines are pulling out of China already (temporarily they say) and the trickle down effect is yet to be felt.. It will probably be few months from now before it is felt more on a regional, Balkan level so to speak.

    Again, I hope and pray I'm way off, so let's stay positive never the less and hope it will be a great year from JU.

    ReplyDelete
    Replies
    1. Air Serbia doesn't fly to China.

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    2. I doubt the virus will have any affect on JU loads. As above, JU doesnt fly to China nor is China a target market for pax. I assume SU will be most affected.

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    3. Virus will have some effect on the BEG airport numbers for those airlines that count on transit passengers from China like Aeroflot, Mahan and Turkish. Many airlines have cancelled China flights until March/April (this site just published news about it) and will likely extend it if outbreak keeps growing at the current pace. This will lower traffic from China for better part of this year. Censors can try to delete this message but the truth will come through.

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    4. Censors? Lol. #conspiracyfreak

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    5. Ignorance is bliss

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  12. Congratulations Air Serbia.

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  13. Ironically, their best LF is still in 2012 when it was 73% during Jat Airways era.

    ReplyDelete
    Replies
    1. Everything else is better in 2019.

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    2. Yes but compare the capacity they had on offer then vs now.

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    3. JU had 73.4% LF in 2017

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    4. If they buy/lease 100-seater, LF could be much better instantly... :)

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    5. They cannot buy anything. With what money?

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    6. They can, but your hate is clouding your mind. If it wasn't cloudy you would already know they are leasing one more ATR72, one CRJ900 and one A319. They also added one A319 last year and wetleased CRJ900 last summer.

      Delete
  14. I think the main thing they need to do in 2020 is expand their fleet. With all the new routes they will definitely need more capacity.

    ReplyDelete
    Replies
    1. Its already announced that 2 AT7's, 1 CR9 and 1 A319 will join the fleet, while 1 AT7 will be removed.

      Delete
  15. Passenger growth is impressive. This year it could go up to 3.1 million even.

    ReplyDelete
    Replies
    1. It is possible. Q1 of last year was terrible for JU so next year will be much better.

      Delete
    2. Passenger growth is incredible but what we are missing here is average yield per pax. Did they provide that info compared with 2018?

      Delete
  16. So for now the new routes they will be operating this summer, that were not operated last summer are Kraljevo-Vienna, Kraljevo-Thessaloniki, Belgrade-Istanbul. The only route that's gone is Nis-Budapest. Plus we are waiting on the new route expansion phase from BEG to be announced.

    ReplyDelete
    Replies
    1. And many routes have an increase in frequencies for the summer.

      Delete
    2. If they will expand their routes and frequencies-when do they get more planes?

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    3. BEG-HAM is no longer in the system so I suppose that one is also gone.

      Delete
    4. It was already mentioned that JU will be opening:

      + AMM (JU857)
      + BUD (JU620/624)
      + FLR (JU550/554)
      + GVA (JU470/474)
      + KIV (JU696)
      + LVV (JU668)
      + OSL (JU450/454)
      + ROV (JU678)
      + VLC (JU590/594)

      Judging by the arrival of YU-APK, YU-APL should arrive in late May. The CR9 last summer started ops on June 1st

      Delete
    5. BEG-HAM je u sistemu i to nadogradjen na A319

      Delete
  17. Lol why don't they include INI in their statistic?

    ReplyDelete
    Replies
    1. because it gives a better picture.

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    2. How exactly? Passenger numbers would be even higher with INI included. They don't need to break down the number and say how many passengers they had from Nis and how many from Belgrade.

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    3. They wanted to show real YoY growth in Belgrade base.

      Delete
  18. @EX-YU Aviation Why Kraljevo-Solun is missing from your list of "New Route Launches"?

    ReplyDelete
    Replies
    1. I can see it
      https://i.ibb.co/q7zR6Lf/dfsd.png

      Delete
  19. Not even a word about expansion of long haul? Shame.

    ReplyDelete
    Replies
    1. I think first they need to make JFK profitable.

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    2. Im guessing another A330 and the cost of launching another long haul destination might eat too much of the limited finances they have.

      Replacing the B733's wont be cheap as there is 3 to replace, short term lease maybe expensive and long term lease means they need somewhere to send them.

      However, they could launch a new route in late March while ARA isnt busy operating JFK, and bring in a second A330 by June. Or launch in december in time for the holiday period, building up brand recognition during the slower months, in anticipation for summer 2021.

      The 1 aircraft 1 route way of operating will never be profitable for them.

      Delete
  20. Great to see an ex YU carrier thrive and be proactive.

    ReplyDelete
    Replies
    1. Seems like Air Serbia thrived after it got rid of Etihad appointed decision makers.

      Delete
  21. Congratulations Air Serbia. It has been a very busy year.

    ReplyDelete
  22. They still need a bit more to go before overtaking JAT's 1987 result - 4.531.000 passengers.

    ReplyDelete
    Replies
    1. If they are allowed to fly for example

      SKP-LJU
      ZAG-DBV
      SKP-SJJ
      LJU-SJJ
      ZAG-SKP
      SPU-SKP
      SPU-ZAG

      as JAT in 1987 could maybe they would have even more than 4,5 mil passengers

      Delete
    2. Oh so your money is on Croatia. I always thought JU could lauch other destinations as well to increase passenger numbers ;)

      Delete
    3. My money is on the market JAT had and Air Serbia does not have.

      50% of above routes do not include Croatia.

      Simple as that

      Delete
  23. 2018 looked really bleak for Air Serbia but 2019 has been a real game changer for them. Hope it continues in 2020.

    ReplyDelete
    Replies
    1. That year of consolidation was obviously needed in order to sustain the growth we have today.

      Delete
    2. And that's exactly what they announced in 2017 :)
      https://www.exyuaviation.com/2017/04/air-serbia-to-consolidate-prior-to.html

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    3. Consolidation was therefore planned during Kondic days. He also said back in 2016: Within a period of five to ten years I can see us with a fleet of perhaps 25 or 26 aircraft.

      https://www.exyuaviation.com/2016/10/air-serbia-eyes-north-africa-asia.html

      Delete
  24. Like someone said, fleet renewal should be top priority now.

    ReplyDelete
    Replies
    1. It can't come soon enough, but I don't think they have any plans on this front.

      Delete
    2. I think these expansions they are announcing is in prepartion to retire the B733's, replace them gradually with more leased A319's, however set out destinations where to send them. No point in paying for aircraft that wont fly. 1 this summer, perhaps 2 next?

      Delete
  25. They should really schedule those new flights soon if they plan to get some bookings. It's practically February already.

    ReplyDelete
  26. Lots of great work has been done at JU in recent months and I think the airline is well set up to exploit several key opportunities and grow and make BEG into a decent hub for the region. Let's hope 2020 brings work on fleet renewal, further expansion and making the offering more efficient. That will really have JU on top of its game.

    ReplyDelete
  27. Waiting for announcment of 10 new destinations....

    ReplyDelete
  28. Everything is nice, but the profit is one that counts after all. Unfortunately, JU is struggling and if they don't find a new partner soon, they will just survive as long as the state want/can provide it with unlimited subsidies.

    ReplyDelete
    Replies
    1. One more guy that sees only JU subvensions which are LEGAL as Serbia is not the memmber of EU...

      I really wonder where you are all when we speak about YM subvensions or even better Croatia's PSO including their illegal Governments help of 33 mil EUR.

      Delete
    2. -but the profit is one that counts after all

      Not true, debunked here dozens of times. Just one of many indicators. Not critical for an expanding airline.

      -Unfortunately, JU is struggling

      Numbers shown in infographics tell a completely opposite story. Compared to OU and YM, JU is booming.

      -if they don't find a new partner soon

      They do have a partner, Etihad. Some functions have been moved from AUH to BEG but part-ownership, codeshares and other cooperation is still alive and well.

      Why don't you get equipped with at least some basic knowledge before posting here? We wouldn't have to laugh so hard at your repeated failed attempts to throw shade at Air Serbia.

      Delete
    3. He might have meant JU is struggling to show profit (meaning profit after exclusion of any state aid), so don't be to harsh to him. It is clear JU is in expansion mode in terms of pax, planes, routes and frequences and that is nice to see.

      Profit is maybe not absolutely critical for an expaning airline, but is a good sign of health and longer term stability, especially if you don't have deep pocket sponsors like Etihad or Quatar have. Otherwise how do you know that subsidies can one day be ended and business will be sustainable/profitable. You cannot know this, if you go, like many here do, into a mode of explaining everything/justifying everything by expansion.

      As to subventions: outright subventions are illegal under the ECAA Agreement, to which Serbia is a party. Thus all justifications needed like PSO in KVO or INI, Serbia Creates livery, repayment of JAT debts etc. At the end of the day the real financial situation is known only to the management and GoS and we have to accept this. Also the graphic shows no financials, only operations and that could give us some hint.

      Finally, the market needs to mature, but as the market matures there will be always new challenges. For example, now JU can make a lot of money on BEG-LHR route as there is no competition from BA on this route (and pls don't tell me about lcc - they are a different market segment). Just look at the prices of JU on this route. I am sure it's a great money maker. But when the market matures, and the frequences will be ready to be increased, the routes will become interesting to many more competitors compared to what is the case now.

      Delete
    4. A lot of people are upset when Air Serbia expands and grows.

      Delete
  29. Uvek se radost povecava kada se objavi poboljsanje poslovanja po broju destinacima i broju putnika Er Srbije.
    Prvenstveno u povecanju profita. Povecanje broja letova
    Sa Beogradskog i Niskog aerodroma od srane Er Srbije su veoma znacajni. Sto se tice i dve linije sa Kraljevacke Morave su veoma znacajne posle sedam "susnih" godina.
    Posle izgradnje paralelne piste sa ILS-om, koja bi tebala da bude zavrsena do kraja iduce godine, i ova treca medjunarodna luka bice aktivirana u punom kapacitetu.
    Kako u vecem broju redovnih, tako i carter a pogotovo
    Kargo letova. Medjutim pored nuznosti zamene bar jedne trecine zastarele flote, prvenstveno turbo- propa.
    Verujem da bi Srpska avio kompanija trebala da ukljuci l par kargo aviona. Manje ili srednjeg kapaciteta za prevoz tereta. Razvoj proizvodnje i biznisa uopste, centralne, zapadne i istocnog dela Srbije ce neminovno trebati kargo
    transport sa Morave i Nisave. Er Srbija nije u poziciji u vecoj obnovi flote. Vlada, vlasnik Nacionalne Avio kompanije verovatno ima strategimu u pojacanju flote, ali neznam koliko vremena je realno po njihovoj ekspertizi.
    Uz buduceg aktiviranje buducih aerodroma, Ponikvi, Rosulja, Ceneja i Borskog aerodroma, jeste buducnost i izgled Srbije dvadeset prvog veka. Sada je na pola puta.
    Er Srbiju treba posmatrati sa gustom, frekfrentnom regionalnom Evropskom mrezom i bar sest, sedam dugo linijskih linija. Uz obnovu i rekonstrukciju Beogradskog aerodroma sa VICI - jevim ucescem i rastom Er Srbije,
    komercijalna aviavijacija do kraja ove decenije ce biti
    Neuporediva i neprepoznatljiva. Ovo ne pisem samo sto volim avione i aerodrome, ljude koji rade u ovoj oblasti.
    Vec zbog toga sto verujem u buduce investicije i razvoj drzave Srbije. Dovde sam stigao.
    Pred skorasnji let za Sydney
    Rodney Marinkovic and Aviation Enthusiast & Associated.
    πŸ›«πŸ˜€πŸ›«πŸ‡·πŸ‡ΈπŸ›«πŸ‡¦πŸ‡ΊπŸ›«πŸ˜€πŸ›«

    ReplyDelete
  30. Basically if JU was an ex-YU airport they would rank fifth behind BEG, ZAG, SPU and DBV.

    ReplyDelete

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