Doncaster Sheffield Airport Strategic Review Announcement

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Forums4airports discusses the latest press release from Doncaster Sheffield airport where the airport questions the future of the airport. The owners of the airport, the Peel Group have announced they are looking at their options as the group has decided the airport is no longer viable as an operational airport. Here's the press release:

"The Board of Doncaster Sheffield Airport (DSA) has begun a review of strategic options for the Airport. This review follows lengthy deliberations by the Board of DSA which has reluctantly concluded that aviation activity on the site may no longer be commercially viable.

DSA’s owner, the Peel Group, as the Airport’s principal funder, has reviewed the conclusions of the Board of DSA and commissioned external independent advice in order to evaluate and test the conclusions drawn, which concurs with the Board’s initial findings.

Since the Peel Group acquired the Airport site in 1999 and converted it into an international commercial airport, which opened in 2005, significant amounts have been invested in the terminal, the airfield and its operations, both in relation to the original conversion and subsequently to improve the facilities and infrastructure on offer to create an award winning airport.

However, despite growth in passenger numbers, DSA has never achieved the critical mass required to become profitable and this fundamental issue of a shortfall in passenger numbers is exacerbated by the announcement on 10 June 2022 of the unilateral withdrawal of the Wizz Air based aircraft, leaving the Airport with only one base carrier, namely TUI.

This challenge has been increased by other changes in the aviation market, the well-publicised impact of the COVID-19 pandemic and increasingly important environmental considerations. It has therefore been concluded that aviation activity may no longer be the use for the site which delivers the maximum economic and environmental benefit to the region. Against this backdrop, DSA and the Peel Group, will initiate a consultation and engagement programme with stakeholders on the future of the site and how best to maximise and capitalise on future economic growth opportunities for Doncaster and the wider Sheffield City Region.

The wider Peel Group is already delivering significant development and business opportunities on its adjoining GatewayEast development including the recent deal for over 400,000 sq ft logistics and advanced manufacturing development on site, creating hundreds of new jobs and delivering further economic investment in the region.

Robert Hough, Chairman of Peel Airports Group, which includes Doncaster Sheffield Airport, said: “It is a critical time for aviation globally. Despite pandemic related travel restrictions slowly drawing to a close, we are still facing ongoing obstacles and dynamic long-term threats to the future of the aviation industry. The actions by Wizz to sacrifice its base at Doncaster to shore up its business opportunities at other bases in the South of England are a significant blow for the Airport.

Now is the right time to review how DSA can best create future growth opportunities for Doncaster and for South Yorkshire. The Peel Group remains committed to delivering economic growth, job opportunities and prosperity for Doncaster and the wider region.”


DSA and the Peel Group pride themselves on being forward-thinking whilst prioritising the welfare of staff and customers alike. As such, no further public comments will be made whilst they undertake this engagement period with all stakeholders.
During the Strategic Review, the Airport will operate as normal. Therefore passengers who are due to travel to the airport, please arrive and check in as normal. If there are any disruptions with your flight, you will be contacted by your airline in good time.
For all press enquiries, please contact Charlotte Leach at [email protected]."

"Not great news for DSA or the region"

Should the government or local council foot the bill and provide a financial subsidy to keep the airport open, thoughts...?
 
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good article , but a lot of falsehoods ,
45 minutes journey ? 30 minutes no problem
a need for new housing ? ( doncaster as more than passed its target for new housing set by the government, even when it was doubled.)

In the committee’s 2023 report to Parliament on the UK’s progress in reducing emissions, they state that “there should be no net airport expansion [in the UK] unless the carbon-intensity of aviation is outperforming the Government's emissions reduction pathway and can accommodate the additional demand.”
and i suppose in all your eyes this only applys to DSA , lets forget about LBA exspansion

and i suppose you all think leeds gainshare £38 million is going bring in massive profits when invested in their transport system?
it will be profitable, a major boost for the economy, etc..
If you think you can get from the Northern or Western parts of Sheffield to DSA in 30 minutes you're either in dream world or driving a Ferrari. No chance. Especially given the traffic hold ups that seem almost permanent on the M1 and M18. It usually takes that time just to get through the city and down to the M1. I've done it often enough.

As for the expansion at LBA, yes, the recommrndation applies there but the current terminal expansion was approved, and ground works started, long before that CCC recommendation so there's nothing the Council could do to prevent it. Nor does LBA have a passenger cap. It also applies though at STN, MAN, BRS, and every other airport currently expanding to a far greater degree than LBA. Your comments are somewhat odd as nobody on here has said these recommendations don't apply at any other airport. We didn't write the article and certainly the majority on here are referring more to the huge cost of reopening and the obvious refusal of the politicians to be open regards how they justify doing so. Or where they expect enough traffic to come from to make the place anything other than a giant white elephant. It's public money being thrown at it and all questions are being batted off or ignored.
 
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good article , but a lot of falsehoods ,
45 minutes journey ? 30 minutes no problem
a need for new housing ? ( doncaster as more than passed its target for new housing set by the government, even when it was doubled.)

In the committee’s 2023 report to Parliament on the UK’s progress in reducing emissions, they state that “there should be no net airport expansion [in the UK] unless the carbon-intensity of aviation is outperforming the Government's emissions reduction pathway and can accommodate the additional demand.”
and i suppose in all your eyes this only applys to DSA , lets forget about LBA exspansion

and i suppose you all think leeds gainshare £38 million is going bring in massive profits when invested in their transport system?
it will be profitable, a major boost for the economy, etc..
You seem to be straw clutching. Whether it takes 30 or 45 minutes to get there from Sheffield is irrelevant really, but it’s making a valid point that Sheffield people in general probably don’t buy into the airport as much as Doncaster people by virtue of the fact that they’re blessed with choice, which the article itself mentions.

As for housing, they may have surpassed their regional quotas but why does that matter on a national level? If there’s demand for housing there, there’s no reason to not build it.

As WH has already mentioned, the expansion programs of other airports have all been approved prior to the CCC report in 2023. It wouldn’t have applied to DSA either had a credible offer been made to Peel to buy the site to ensure its continued existence, but nobody was interested were they? Certainly not the private sector anyway, which is usually a good indicator of confidence in viability.

The article, whilst clearly biased towards a green agenda (which I believe is a valid one), makes some excellent points about the much vaunted economic benefits. It is these benefits from which the justification is being made. They are wholly false and hyper inflated to suit the narrative. I’ve seen commentators on LinkedIn pontificating about the connections it will bring for business travellers, but it never did before so what’s changed?

It’s all based on a what if scenario and most of it on pure fantasy rather than reality. Do not spend the money unless you are certain that airline and cargo operators are going to invest heavily to bring a wider range of services than was seen before, because if that is not possible (and we have no reason to believe it is at this time), then it’ll be exactly the same outcome only this time the tax payer will have to pick up the tab.
 
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does this mean CDC are going to run the airport?
No, it means that CDC are planning to bankroll the running of the airport by owning the airport OPCO outright and recruiting an SME for the day to day running of the airport.

An ex SYMCA staffer has posted elsewhere another clanger from the SAU report;

Planning – CDC appear to have created their own paradox by insisting in the Local Plan that the land on and around the airport can only be used to support an airport and are now using their own planning decision to justify not considering alternative economic developments for the area.
The council has questions to answer about the decisions it has made to spend over £100m of regional devolution money that it could in theory spend on numerous other projects to stimulate its economy without taking on the burden of a commercial risk, and creating such environmental harm.

Said it before, crazy making stuff this. What times Full Council today? Selfie stick Nick is claiming there will be some questions asked in it.

As expected:

Re-opening our airport remains my number one priority.

I want to confirm to council and the people of Doncaster that we have an international airport operator, ready and waiting in the wings to work with us.

Yesterday the government Subsidy Advice Unit (SAU) published their report on the proposed subsidy to FlyDoncaster.

FlyDoncaster is a wholly owned company of this council, which has been established to manage the airport and partner with our international airport operator. Its key initial role is to mobilise the re-opening of the airport for passenger flights in Spring 2026. Further details in relation to this will be included in the reports to go through the council decision making process in the weeks ahead.

The overall tone of the SAU report is a positive one and acknowledges that Doncaster Council has considered the options and why public funding is an appropriate mechanism to consider. There are a number of points raised for further consideration and these will be responded to as part of our ongoing planning.

This is set to be the largest single investment in Doncaster for more than a generation, hence the considerable level of due diligence and our rigorous and logical approach to accomplish this monumental challenge of saving and re-opening our airport.

This is a Team Doncaster and Team South Yorkshire effort, I would like to thank the residents and businesses of Doncaster for their patience, we are not over the line yet, but we are nearly there.

The SAU report yesterday, is another key milestone we have completed. The next stage is my budget proposal, and approval to draw-down gainshare funding from South Yorkshire Mayoral Combined Authority, which are scheduled to go through the decision-making process over the coming weeks, culminating at Full Council on 27th February that seeks budget approval.

To conclude, we have an international airport operator ready, this is the operator that made it through to the end of the procurement process, and although we did not gain private sector investment as originally planned, we have reached a deal which means this council will wholly own the company that will partner with our international operator.

Doncaster’s airport is the people’s airport, with a special place in the heart of many. I want to emphasise to our people;
- This is an investment in you and your future and your family’s future!
- It is an investment in our economy.
- It is an investment in our businesses.
- It is an investment in our jobs and skills.
This is an investment that will increase trade, export and growth for Doncaster and South Yorkshire through global connectivity putting Doncaster on the map, regionally, nationally and internationally.

That is why re-opening our airport remains my number one priority.

#Doncaste#Doncasterisgreat
 
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No, it means that CDC are planning to bankroll the running of the airport by owning the airport OPCO outright and recruiting an SME for the day to day running of the airport.

An ex SYMCA staffer has posted elsewhere another clanger from the SAU report;

Planning – CDC appear to have created their own paradox by insisting in the Local Plan that the land on and around the airport can only be used to support an airport and are now using their own planning decision to justify not considering alternative economic developments for the area.
The council has questions to answer about the decisions it has made to spend over £100m of regional devolution money that it could in theory spend on numerous other projects to stimulate its economy without taking on the burden of a commercial risk, and creating such environmental harm.

Said it before, crazy making stuff this. What times Full Council today? Selfie stick Nick is claiming there will be some questions asked in it.

As expected:

Re-opening our airport remains my number one priority.

I want to confirm to council and the people of Doncaster that we have an international airport operator, ready and waiting in the wings to work with us.

Yesterday the government Subsidy Advice Unit (SAU) published their report on the proposed subsidy to FlyDoncaster.

FlyDoncaster is a wholly owned company of this council, which has been established to manage the airport and partner with our international airport operator. Its key initial role is to mobilise the re-opening of the airport for passenger flights in Spring 2026. Further details in relation to this will be included in the reports to go through the council decision making process in the weeks ahead.

The overall tone of the SAU report is a positive one and acknowledges that Doncaster Council has considered the options and why public funding is an appropriate mechanism to consider. There are a number of points raised for further consideration and these will be responded to as part of our ongoing planning.

This is set to be the largest single investment in Doncaster for more than a generation, hence the considerable level of due diligence and our rigorous and logical approach to accomplish this monumental challenge of saving and re-opening our airport.

This is a Team Doncaster and Team South Yorkshire effort, I would like to thank the residents and businesses of Doncaster for their patience, we are not over the line yet, but we are nearly there.

The SAU report yesterday, is another key milestone we have completed. The next stage is my budget proposal, and approval to draw-down gainshare funding from South Yorkshire Mayoral Combined Authority, which are scheduled to go through the decision-making process over the coming weeks, culminating at Full Council on 27th February that seeks budget approval.

To conclude, we have an international airport operator ready, this is the operator that made it through to the end of the procurement process, and although we did not gain private sector investment as originally planned, we have reached a deal which means this council will wholly own the company that will partner with our international operator.

Doncaster’s airport is the people’s airport, with a special place in the heart of many. I want to emphasise to our people;
- This is an investment in you and your future and your family’s future!
- It is an investment in our economy.
- It is an investment in our businesses.
- It is an investment in our jobs and skills.
This is an investment that will increase trade, export and growth for Doncaster and South Yorkshire through global connectivity putting Doncaster on the map, regionally, nationally and internationally.

That is why re-opening our airport remains my number one priority.

#Doncaste#Doncasterisgreat
So in other words, no private company is interested in DSA, only companies are interested if there is a fat pot of cash from CDC?

What does that tell you?

International operator waiting in the wings to get paid to operate.. right
 
So in other words, no private company is interested in DSA, only companies are interested if there is a fat pot of cash from CDC?

What does that tell you?

International operator waiting in the wings to get paid to operate.. right
The mouth breathers are lapping it up. I’m not sure what time Full Council is today but I’m sure that even if some pertinent questions are asked they’ll be batted off with the usual incoherent babble as before.

will it be like teeside airport?
do they have airport operator?
Yes it’ll lose millions, no their ‘operator’ walked away after short while. Only difference will be that Teesside is owned by The MCA, DSA is owned by Peel with break clauses, some of which will be performance led. If the full money is granted it will never be recovered, I say that with 100% confidence.
 
will it be like teeside airport?
do they have airport operator?
Yep exactly like Teesside - sucking up Council funds which could deliver a far greater ROI on other projects just to buy local votes. Remember this is the same Clowncil who started the closure exercise by not approving a loan of 1/5 of what they are now proposing to spend.
Funding based upon on a business case which holds as much water as a colander on an airport which the private sector won’t invest in as they deem it unviable. Yep its exactly like Teesside
 
It sure does seem to confirm the original thread of conversation here, no private company will touch it, but “yes I will operate it with no investment risk if you pay me”. Looking at the response on Facebook to the Yorkshire Post article the public opinion seems to be changing Facebook Free Press
There’s a lot of confirmation bias I’m afraid, and Ros Jones and friends know this so they put out a positive statement to control the narrative much like Chadwick did last night.

It’s inherently irresponsible and flies in the face of full transparency, I don’t even understand why the airport operator is secret still, it doesn’t need to be because commercially they are locked into a public sector enterprise and have apparently won the tender.

The SAU report raises questions about the fundamental viability of the business. They question why the operator will pay no rent for 10 years even though it is claimed that the airport will be profitable within 5. It questions why the council have set up an SPV if the money is only coming from the council. It questions the claims that the displacement of air routes are just naturally ‘on loan’ to LBA which I find hard to believe is not subject to a long term commercial contract with LBA.

They will defer rent payments for 10 years because that will be part of the deal with the SME to get them interested. They might not have any financial obligations but they’ll still be liable for performance related bonuses or penalties I expect. It also might give a false representation of the financial performance - like Teesside, it would be profitable if it weren’t for the fact they had to pay for stuff!

I suspect the SPV is not about attracting private sector investment in the future, it is about setting up a private company to avoid account scrutiny, this is probably why the SAU are questioning it! Though of course they will address this with the plan of attracting private sector investment as a convenient excuse.

As we already know, this is a public grant (as SAU apparently see it) so there will be grounds for a legal challenge should LBA decide to pursue it.

I don’t expect the SAU questions to be answered publicly. They buried the submission behind a good news story of a light aircraft landing at DSA. They were unable to bury yesterday’s news quick enough for the media outlets ti pick up on it. The core supporters are displaying confirmation bias by simply claiming that the press have got it wrong. Sadly it’s a losing battle on that front.
 
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There’s a lot of confirmation bias I’m afraid, and Ros Jones and friends know this so they put out a positive statement to control the narrative much like Chadwick did last night.

It’s inherently irresponsible and flies in the face of full transparency, I don’t even understand why the airport operator is secret still, it doesn’t need to be because commercially they are locked into a public sector enterprise and have apparently won the tender.

The SAU report raises questions about the fundamental viability of the business. They question why the operator will pay no rent for 10 years even though it is claimed that the airport will be profitable within 5. It questions why the council have set up an SPV if the money is only coming from the council. It questions the claims that the displacement of air routes are just naturally ‘on loan’ to LBA which I find hard to believe is not subject to a long term commercial contract with LBA.

They will defer rent payments for 10 years because that will be part of the deal with the SME to get them interested. They might not have any financial obligations but they’ll still be liable for performance related bonuses or penalties I expect. It also might give a false representation of the financial performance - like Teesside, it would be profitable if it weren’t for the fact they had to pay for stuff!

I suspect the SPV is not about attracting private sector investment in the future, it is about setting up a private company to avoid account scrutiny, this is probably why the SAU are questioning it!

As we already know, this is a public grant (as SAU apparently see it) so there will be grounds for a legal challenge should LBA decide to pursue it.

I don’t expect the SAU questions to be answered publicly. They buried the submission behind a good news story of a light aircraft landing at DSA. They were unable to bury yesterday’s news quick enough for the media outlets ti pick up on it. The core supporters are displaying confirmation bias by simply claiming that the press have got it wrong. Sadly it’s a losing battle on that front.
The mayor certainly didn’t inspire any confidence on tonight’s Look North…..failing again to explain why the airport will be a success this time around when pressed….still it was good to see Old Spencer giving it some to another airport for a change🤣
 
The mayor certainly didn’t inspire any confidence on tonight’s Look North…..failing again to explain why the airport will be a success this time around when pressed….still it was good to see Old Spencer giving it some to another airport for a change🤣
I seem to detect a slight shift in stance from Spencer and therefore the BBC as far as their love in with DSA is concerned. In recent reports, they have been asking a few awkward questions of Mayor Jones, all if which she has, not so skilfully, sidestepped like a true politician..
 
The mouth breathers are lapping it up. I’m not sure what time Full Council is today but I’m sure that even if some pertinent questions are asked they’ll be batted off with the usual incoherent babble as before.


Yes it’ll lose millions, no their ‘operator’ walked away after short while. Only difference will be that Teesside is owned by The MCA, DSA is owned by Peel with break clauses, some of which will be performance led. If the full money is granted it will never be recovered, I say that with 100% confidence.
Stobart/ Eskern left/ paid off because they were in financial trouble. So to save dragging their shareholding of Goosepool into the hands of administrators. Thus could have meant hold ups in progress for the airport whilst the 25% shareholding was sorted out. It was seen as a better option for them to part ways, so to allow Teesside to be able to progress forward.
 
Stobart/ Eskern left/ paid off because they were in financial trouble. So to save dragging their shareholding of Goosepool into the hands of administrators. Thus could have meant hold ups in progress for the airport whilst the 25% shareholding was sorted out. It was seen as a better option for them to part ways, so to allow Teesside to be able to progress forward.
Which is fine, but nobody stepped up to replace them, they just put the shares into a charitable foundation instead. The reasons for this are open to debate, but nobody can deny that the airport is also a loss leader only probably on a much smaller scale than a reopened DSA is likely to be.
 
I seem to detect a slight shift in stance from Spencer and therefore the BBC as far as their love in with DSA is concerned. In recent reports, they have been asking a few awkward questions of Mayor Jones, all if which she has, not so skilfully, sidestepped like a true politician..
I’ve seen the report and I must say I’m disappointed that nobody seems to be challenging Ros Jones on her claims that it will have a ROI of 9-1. Quite how this is possible is unfathomable. As the SAU states, they have over optimistic forecasts with no contingency for any under performance, why have they not done this to protect the tax payer? Oliver Coppard has said this is important as they will do everything they can to protect the public, but clearly this isn’t being done! I would like to know how they answer this question.

Ros Jones and CDC, along with the hangers on in SY are displaying a level of arrogance that I’ve come to expect more from the populist right and I would expect better from them. But not to be political, I hope OC sees sense and SYMCA staffers are taking the SAU findings seriously and requesting that the CDC at least try to answer those crucial questions that are glaring omissions from any part of the plan that even SAU has seen.
 
I’ve seen the report and I must say I’m disappointed that nobody seems to be challenging Ros Jones on her claims that it will have a ROI of 9-1. Quite how this is possible is unfathomable. As the SAU states, they have over optimistic forecasts with no contingency for any under performance, why have they not done this to protect the tax payer? Oliver Coppard has said this is important as they will do everything they can to protect the public, but clearly this isn’t being done! I would like to know how they answer this question.

Ros Jones and CDC, along with the hangers on in SY are displaying a level of arrogance that I’ve come to expect more from the populist right and I would expect better from them. But not to be political, I hope OC sees sense and SYMCA staffers are taking the SAU findings seriously and requesting that the CDC at least try to answer those crucial questions that are glaring omissions from any part of the plan that even SAU has seen.
Looks like a critical eye is now starting to be cast over the funding arrangements. No doubt DSA supporters will point to the YP being a Leeds based paper and therefore can’t wait to see DSA fail again!
It does though, judging by some of the comments of the Mayors Facebook feed, seem that local residents are starting to question the Mayors decision making on this! https://www.yorkshirepost.co.uk/new...05m-loan-to-be-used-to-reopen-airport-4958128
 
Looks like a critical eye is now starting to be cast over the funding arrangements. No doubt DSA supporters will point to the YP being a Leeds based paper and therefore can’t wait to see DSA fail again!
It does though, judging by some of the comments of the Mayors Facebook feed, seem that local residents are starting to question the Mayors decision making on this! https://www.yorkshirepost.co.uk/new...05m-loan-to-be-used-to-reopen-airport-4958128
Behind a paywall, anyone got a full copy?

Note that after the last abomination of a Full Council (that was made available to view via video) they have removed the video function from yesterday’s meeting. Ex-MP Nick and his selfie stick has threatened to do a write up about it later by the looks of it.
 
what i do not understand why do they make the operator public?
a lot of what was wrote in the YP is old news , pug mentioned CDC and FLYDONCASTER in november on here.
there are plans to reactivate at DSA bonded warehouses, as was the plan in 2019
and the report also mentions it will take 20% of LBA business if DSA reopens!
 
Behind a paywall, anyone got a full copy?

Note that after the last abomination of a Full Council (that was made available to view via video) they have removed the video function from yesterday’s meeting. Ex-MP Nick and his selfie stick has threatened to do a write up about it later by the looks of it.
Seems Conservative Councillors are unhappy as to why CDC is having to fund it. Questions over the terms and length of the loans and what will have to give in Doncaster given they’ll have spent most of their allocated gainshare cash! Also a question was asked about how much private investment will there be as part of this deal. The Mayor has said all will be revealed in Feb - no doubt when she has had time to fathom out a story 🤣. CDC are an utter shambles - it seems even Councillors were aware of the construct of the funding until the SAU report. Any decent Council would have built a cross party team to progress the airport work given its importance and the size of funding….I suspect the Mayor didn’t want to do this so she can take all the plaudits - that may not end up being the case….
Also quotes a local resident attending the meeting saying it’s a white elephant, cheaper to fly from MAN even with a taxi and there are better things to spend money on in Doncaster….
 
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what i do not understand why do they make the operator public?
a lot of what was wrote in the YP is old news , pug mentioned CDC and FLYDONCASTER in november on here.
there are plans to reactivate at DSA bonded warehouses, as was the plan in 2019
and the report also mentions it will take 20% of LBA business if DSA reopens!
They’ve no reason to not make the operator public if the contract has been signed, it looks like they’re using it for electioneering purposes by releasing it as close to the local mayor election as possible.

It’s not old news, it’s just that the SAU report has confirmed what some of us had believed through reading between the lines. Subtle changes in language via the limited information the council has made available to the public, combined with the persistent delays in the procurement exercise, meant that it was quite easy to interpret that as the private sector had rejected the airport by that point so the council decided to go it alone.

The report mentions what the CDC and the consultants they have in their pocket have predicted will be the impact on LBA. As I said before, the Council see the wizzair displacement as merely a loan to LBA of what is rightfully DSA’s. It’s doubtful that LBA see it that way, im not even sure Wizzair themselves would see it that way! It’s a flimsy projection based on hope. I can’t imagine any heads of terms have been agreed with airlines yet.

I would also question how far £105 million will go. They’re deferring repayments if the lease until Y11 which £44 million is being allocated to. However they say that it will all be repaid by Y25? I’m not sure I understand that, anyone explain? Are they saying they’ll defer for 10 years and the repayments would be made over the following 15 years? Airports are capital intensive, who pays for the expected and unexpected capital investment requirements as and when they appear?

If it can’t pass the test for private sector investment, and it’s not a vital public service, I just can’t fathom how this is a viable and responsible investment for the public to make in any way whatsoever. I think a judicial review should be on the cards.
 

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