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Air Arabia-Led Consortium Launches New Low-Cost Carrier in Saudi Arabia

A new low-cost airline based in Dammam by Air Arabia-led consortium targets 10M passengers by 2030, boosting Saudi aviation and Vision 2030 goals.

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New Low-Cost Carrier in Saudi Arabia: Strategic Launch by Airlines-Led Consortium

Saudi Arabia’s aviation industry continues to evolve at an accelerated pace, aligning with the country’s long-term economic development framework known as Vision 2030. One of the most prominent recent developments is the announcement of a new low-cost carrier (LCC) to be based in Dammam and spearheaded by a consortium comprising Air Arabia, Nesma Group, and KUN Holding. This move reflects increasing investment momentum across the Kingdom’s transportation and tourism infrastructure and adds to a growing list of aviation undertakings aimed at increasing regional connectivity and passenger handling capacity.

The General Authority of Civil Aviation (GACA), the central regulator for Saudi civil aviation, has awarded this consortium the right to establish a new national low-cost airline, marking a significant expansion of the country’s airline portfolio. Currently dominated by players such as flynas and flyadeal, the LCC market is expected to benefit from this addition, particularly as it adds presence in the historically underserved Eastern Province. King Fahd International Airports (DMM) in Dammam will serve as the new airline’s base of operations.

This development is emblematic not only of the Kingdom’s increasing liberalization of its aviation sector but also of Saudi Arabia’s broader goal of becoming a leading regional and global aviation hub. The introduction of a Dammam-based LCC supports Saudi Arabia’s Vision 2030 objectives, including increasing the number of annual air travelers to 330 million by the end of the decade.

Consortium Structure and Strategic Objectives

Composition of the Consortium

The new LCC initiative is driven by a tri-partite consortium. Leading the collaboration is Air Arabia, the largest and first low-cost carrier in the Middle East, headquartered in Sharjah, United Arab Emirates. Air Arabia brings seasoned expertise in budget airline operations with established joint ventures in Morocco, Egypt, and Pakistan. Joining it are Saudi Arabia’s Nesma Group, with operations ranging from aviation to logistics, and KUN Holding, a domestic investment entity with a focus on the tourism and infrastructure sectors.

According to official statements, each partner will bring complementary capabilities to the new venture. Air Arabia will contribute its longstanding operational low-cost model and fleet management experience. Nesma provides local insight and logistical support precipitated by its aviation background through Nesma Airlines, while KUN Holding supplies capital and alignment with regional economic development initiatives.

The company will operate under the “Air Arabia Alliance” brand, representing both continuity with Air Arabia’s platform-based model and an evolution toward deeper market localization in Saudi Arabia.

“This achievement represents a key milestone that reaffirms our commitment to supporting the growth and development of the Kingdom’s aviation sector.” , Adel Al Ali, Group CEO, Air Arabia

Operational Parameters and Market Reach

The new carrier will be based at King Fahd International Airport in Dammam (DMM), strategically enhancing air travel in a region historically overlooked by aviation development. The consortium’s plan aims to operate 45 Airbus A320-family aircraft by 2030, with services extending across 81 cities, 24 domestic and 57 international destinations. This scope is designed to capitalize both on domestic demand and international tourism objectives under Vision 2030.

The airline targets transporting 10 million annual passengers by 2030, positioning it as a direct participant in Saudi Arabia’s effort to elevate its air travel volume from 111 million passengers in 2022 to 330 million by 2030. Employment generation is another cornerstone objective, with the company projecting the creation of over 2,400 direct aviation-sector jobs, further contributing to regional economic activation.

The Eastern Province, while home to significant parts of Saudi Arabia’s industrial output and nearly 50% of its GDP, has lacked a flagship airline, a gap the consortium explicitly aims to fill. By boosting accessibility to and from Dammam, the LCC is expected to stimulate both inbound tourism and internal business travel.

Fleet, Technology, and Expected Timeline

The carrier’s fleet is expected to mirror Air Arabia’s existing configurations, dominated by Airbus A320-family aircraft. This uniformity allows for streamlined training, operational simplicity, and maintenance efficiency. Air Arabia currently operates more than 80 aircraft and has orders for an additional 120 A320neos, providing reservoir capacity for the Saudi operation’s launch trajectory.

The rollout of actual services will be phased. Preliminary operations are targeting launch in 2026, with gradual scaling leading to projected full deployment by 2030. This timeline aligns with procurement cycles, regulatory certifications, and route network negotiations.

Additionally, plans are in place for innovation in customer experience, digital bookings, and cost-effective services, modeled after Air Arabia’s existing approach that emphasizes no-frills, affordable regional connectivity.

Impact and Broader Implications

Supporting Vision 2030 and Regional Tourism

This new airline venture plays a direct role in supporting the Kingdom’s national transformation agenda. Vision 2030 highlights tourism as one of the central non-oil sectors set for expansion. With major projects such as NEOM, Red Sea Global, and Amaala under development, the need for diversified and economical air travel options becomes imperative.

Dammam’s strategic location near Bahrain, Qatar, and the UAE grants it regional accessibility. This geographic advantage reinforces the logic of making it a regional transport hub. The airport itself handled over 12.6 million passengers in 2024, and this addition may well push those numbers upward, contributing to regional tourism flows toward destinations within Saudi Arabia.

Such connectivity also improves accessibility for Umrah pilgrims, business travelers, and visiting expatriates, all of whom contribute to the Kingdom’s growing service economy. Tourism targets aim to welcome over 150 million visitors annually by decade’s end, and cost-efficient air services are essential in facilitating that growth.

Competitive Dynamics and Market Maturity

Existing low-cost carriers in the Kingdom include flynas and flyadeal. Flynas, launched in 2007, operates a growing fleet of 61 aircraft with ambitions to expand to 250. Flyadeal, founded in 2017 as a Saudia subsidiary, operates 42 aircraft. Collectively, these LCCs dominate 29% of Saudi Arabia’s seat capacity, comparable but slightly below emerging markets like Southeast Asia.

The latest entrant is unlikely to substantially displace these incumbents but will instead aid in growing the overall market. As GACA’s EVP Mohammed Alkhuraisi noted, the objective is not saturation but strategic growth driven by structured licensing and airport availability. This approach leverages increasing demand trends while avoiding excess supply that could undercut fare revenues.

Furthermore, the new airline will inherit tried-and-tested LCC methodologies from Air Arabia’s other ventures, giving it an operational resilience that may shorten ramp-up timelines compared to newer startups.

Sustainability Considerations and Future Challenges

As aviation growth accelerates, environmental considerations inevitably take precedence. Saudi Arabia aims to achieve net-zero emissions by 2060, and its Civil Aviation Environmental Sustainability Program (CAESP) outlines feasible targets. While low-cost carriers are generally more carbon-efficient per seat, fleet expansion still leads to absolute emissions growth without offset technologies or alternative fuels.

SAF adoption is considered one pathway, though costs remain prohibitively high, estimated to be over four times the cost of conventional jet fuel in 2025. Investment in more fuel-efficient aircraft, incentivization schemes, and carbon market alignment offer partial mitigation solutions. Details from the new consortium on sustainability strategies remain minimal but are expected in later operational disclosures.

Balancing rapid passenger growth, economic opportunity, and environmental responsibility will be crucial to ensure long-term compatibility with Saudi Arabia’s national and international climate commitments.

Conclusion

The establishment of a new low-cost airline headed by Air Arabia, Nesma Group, and KUN Holding represents a calculated and strategic move to further liberalize and expand the Saudi aviation sector. As it sets base in Dammam, this initiative reflects not only strong commercial fundamentals but also an alignment with regional development goals, economic diversification mandates, and global connectivity ambitions.

Looking ahead, the airline’s success will hinge on execution, operational scalability, and its ability to carve out a distinctive identity amidst an increasingly competitive landscape. With deep regional experience and a clear mandate, the project enters the aviation ecosystem at a defining moment, bridging strategic necessity with market opportunity.

FAQ

What is the name of the new airline?
The name is expected to reflect the “Air Arabia Alliance” brand, although a final brand name has yet to be publicly confirmed.

When will the airline begin operations?
The airline is targeting a phased launch starting in 2026, with full operational scale-up anticipated by 2030.

What aircraft will the new LCC operate?
The airline is expected to operate Airbus A320-family aircraft, similar to those used in Air Arabia’s existing fleets.

Where is the airline based?
The airline will be based at King Fahd International Airport (DMM) in Dammam, Eastern Province, Saudi Arabia.

How will this airline affect the local economy?
It is projected to create over 2,400 direct jobs and significantly enhance tourism and connectivity in Eastern Saudi Arabia.

Sources

Photo Credit: Gulf Business

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Route Development

Miami International Airport Unveils $33M Digital Monitoring Hub

Miami International Airport plans a $33 million Airport Operations Center with AI technology, consolidating 30 agencies for improved operations by 2027.

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This article is based on an official press release from Miami International Airport.

On May 18, 2026, Miami-Dade County Mayor Daniella Levine Cava and Miami International Airport (MIA) Director and CEO Ralph Cutié announced the development of a $33 million Airport Operations Center (AOC) and Digital Monitoring Hub. According to the official press release, this facility will be the first airport-wide digital monitoring hub in the United States.

Slated to open in 2027, the 13,254-square-foot center aims to revolutionize how the Airports handles daily operations and emergency responses. By leveraging artificial intelligence and digital tower technology, the hub will provide 360-degree visibility across the entire airport footprint.

The project represents a critical component of MIA’s broader infrastructure overhaul. As the busiest U.S. airport for international freight and a major global passenger gateway, MIA is utilizing this new command center to consolidate 30 different local and federal agencies into a single, unified workspace, drastically improving day-to-day efficiency.

Technological Advancements and AI Integration

The centerpiece of the new AOC will be a massive, high-definition panoramic video wall. Based on the project specifications released by the airport, this display will offer operators real-time, 360-degree visibility of MIA’s airside, landside, and terminal areas. The facility will also deploy AI-powered long-range pan-tilt-zoom cameras to monitor the sprawling campus.

Artificial intelligence will play a significant role in optimizing aircraft movement and gate assignments. However, airport leadership emphasized in the announcement that the technology is designed to augment human operators rather than eliminate jobs.

“That is meant to enhance the way that we move aircraft, the way we gate aircrafts. It just makes our gating operation more efficient. It’s not meant to replace anybody,” stated MIA Director and CEO Ralph Cutié.

Operational Consolidation and Crisis Management

Currently, the numerous agencies operating at MIA, including the Transportation Security Administration (TSA), Miami-Dade Police, Border Patrol, and Miami-Dade Fire Rescue, are scattered across the airport property. Coordination relies heavily on traditional phone communication. The new digital hub will co-locate representatives from 30 agencies into one room, drastically reducing response times and streamlining communication.

“These [agencies] are scattered throughout the airport. They’d have to call on the telephone to coordinate. Think about that. But now, like in any kind of an emergency situation that arises, we’ll all be together. That’s critically important when dealing with any kind of an emergency,” noted Mayor Daniella Levine Cava.

Infrastructure Resilience

The facility will be constructed by renovating an unfinished shell space on the third floor of the North Terminal (Terminal D, Section B – Landside). To ensure continuous operation during South Florida’s extreme weather events, the center is designed with hurricane-resistant towers, vibration-controlled platforms, and a cyber-secure architecture. During crises, the space will seamlessly transition into a full-scale Emergency Operations Center (EOC), allowing all agencies to work side-by-side for rapid incident management.

The Broader “Modernization in Action” Initiative

The $33 million AOC is funded through airport-generated revenues, alongside federal and state contributions. It is one of over 200 projects falling under MIA’s $14 billion “Modernization in Action” (M.I.A.) capital improvement program.

According to the provided research data, this decade-long initiative is designed to prepare the airport for a projected 77 million travelers and 4 million tons of freight by 2040. Other notable projects in this pipeline include the recently opened Ibis Garage (completed in December 2025), the modernization of over 600 elevators and moving walkways, the renovation of 196 public restrooms, and the future Concourse K expansion.

AirPro News analysis

We note that the path to breaking ground on this ambitious project was not without administrative hurdles. According to a Miami‑Dade Board memo referenced in the project’s background data, the county initially rejected five bids for the AOC in October 2025. This delay was caused by an addendum that introduced a new unit of measure, resulting in inconsistent pricing among bidders. The Miami‑Dade Aviation Department’s decision to revise and re-advertise the solicitation demonstrates the strict regulatory and financial scrutiny applied to self-funded airport infrastructure projects. By ensuring a transparent bidding process, MIA mitigates long-term financial risks while executing its massive $14 billion modernization mandate.

Frequently Asked Questions (FAQ)

When will the new MIA Airport Operations Center open?

The facility is scheduled for completion in 2027.

How much will the digital monitoring hub cost?

The project is budgeted at $33 million, which is funded by airport-generated revenues alongside federal and state contributions.

Where will the new hub be located?

It will be built in an existing 13,254-square-foot shell space on the third floor of MIA’s North Terminal (Terminal D, Section B – Landside).

How many agencies will operate out of the new center?

The hub will consolidate representatives from 30 different local and federal agencies, including the TSA, Miami-Dade Police, Border Patrol, and Miami-Dade Fire Rescue.

Sources

Photo Credit: Miami International Airport

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Route Development

Landline and Massport Launch Logan Airport Remote Terminal in Framingham

Landline and Massport introduce North America’s first off-airport TSA checkpoint at Framingham, streamlining travel to Boston Logan Airport.

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This article is based on an official press release from Landline and Massport.

On May 18, 2026, mobility company Landline and the Massachusetts Port Authority (Massport) announced a groundbreaking partnerships to launch the Logan Airport Remote Terminal at Framingham. According to the official press release, this facility will serve as North America’s first off-airport Transportation Security Administration (TSA) security checkpoint. The pilot program is scheduled to officially launch on June 1, 2026.

The service is designed to allow eligible passengers to check in, drop their luggage, and clear TSA security in the suburbs before boarding a secure motorcoach. This coach then transports travelers directly to their airside departure gate at Boston Logan International Airport (BOS), bypassing traditional terminal congestion and streamlining the travel experience.

Operational Details of the Framingham Remote Terminal

Eligible Airlines and the Passenger Journey

During the initial pilot phase, the remote terminal service is exclusively available to passengers flying on Delta Air Lines and JetBlue Airways. Travelers will arrive at the remote terminal, located in a former park-and-ride lot at 19 Flutie Pass in Framingham, Massachusetts, approximately 25 miles west of Boston Logan.

As outlined in the announcement, passengers will undergo the exact same federally approved TSA screening process as they would at Logan’s main checkpoints. Once cleared, they board a secure Landline coach bus for a 40 to 80-minute ride, depending on traffic. The bus drops passengers off post-security: Delta passengers arrive at Terminal A, Gate A18, and JetBlue passengers arrive at Terminal C, Gate C8. Checked bags are securely transported and transferred directly into the Logan baggage system to be loaded onto the aircraft.

Pricing, Parking, and Operating Hours

According to the provided operational details, the service is priced at $9 per adult each way, with children riding free when accompanied by a ticketed family member. Parking at the Framingham facility costs $7 per day, which the press release notes is significantly cheaper than parking directly at the airport. Tickets can be booked online between 90 days and 90 minutes prior to departure. Initially, the pilot program will operate for flights departing between 5:30 a.m. and 4:00 p.m., with buses running hourly.

Addressing Airport Congestion and Infrastructure Limits

Tackling Record Passenger Volumes

Industry data highlights the growing need for off-site solutions. U.S. airports handled a record 1 billion passengers in 2025, with annual throughput projected to hit 1.5 billion by 2040. In 2024, Boston Logan handled a record 43 million passengers, leading to severe congestion at curbsides and security checkpoints. Expanding physical airport footprints is highly expensive and logistically difficult in dense metropolitan areas, making remote terminals an attractive alternative to pouring more concrete.

Executive Commentary

David Sunde, CEO and Founder of Landline, emphasized the need for innovative solutions to travel friction in the company’s official statement.

“People love traveling , they just hate everything it takes to get there. The traffic, the parking, the lines, the chaos, all of those little uncertainties add up to a real headache before you ever reach your seat. We built Landline to fix that,” Sunde stated in the press release.

Rich Davey, CEO of Massport, highlighted the strategic vision behind the pilot program and its focus on passenger convenience.

“The Remote Terminal pilot program is part of Massport’s broader vision to reimagine the travel experience and make the passenger journey more seamless, connected, and efficient,” Davey noted.

AirPro News analysis

We view this development as a critical test case for the future of U.S. airport infrastructure. By intercepting passengers 25 miles outside the city, the program aims to take cars off the congested Massachusetts Turnpike and reduce the number of vehicles idling at the airport’s drop-off curbs. The TSA has been exploring off-site screening to relieve airport congestion for several years, with congressional funding for such pilot programs dating back to fiscal year 2019.

Furthermore, Massport has indicated plans to expand access to additional airlines in the future, and preliminary discussions are already underway regarding a second remote terminal facility in Braintree, Massachusetts, to serve passengers south of Boston. If successful, the Landline and Massport pilot could serve as a highly replicable blueprint for other landlocked, high-traffic airports across the country, such as JFK, LAX, or ORD, that are looking to decentralize their security and check-in processes.

Frequently Asked Questions (FAQ)

When does the Logan Airport Remote Terminal open?
The pilot program officially launches on June 1, 2026.

Which airlines are participating in the pilot?
During the initial phase, the service is available exclusively to passengers flying on Delta Air Lines and JetBlue Airways.

How much does the remote terminal service cost?
The bus service costs $9 per adult each way (children ride free with a ticketed family member). Parking at the Framingham facility is $7 per day.

Where do passengers get dropped off at Boston Logan?
Passengers are dropped off post-security directly at their terminals. Delta passengers are dropped at Terminal A, Gate A18, and JetBlue passengers at Terminal C, Gate C8.

Sources

Photo Credit: Massport

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Commercial Aviation

Merlin Launches AI-Powered Autonomy for Commercial Cargo Aircraft

Merlin introduces Merlin Pilot, an AI-driven system for commercial cargo aircraft, addressing pilot shortages and advancing certification with FAA and NZ CAA.

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This article is based on an official press release from Merlin, Inc.

Boston-based aerospace and defense technology company Merlin, Inc. (NASDAQ: MRLN) announced on May 14, 2026, the official launch of “Merlin Pilot for Commercial Cargo.” According to the company’s press release, this new initiative is designed to adapt Merlin’s military-grade, artificial intelligence-powered autonomous flight systems for the commercial air freight sector.

The commercial cargo offering serves as the inaugural application under a newly introduced product family dubbed “Condor.” Merlin states that the Condor line is engineered to facilitate reduced-crew operations and scale autonomous capabilities across large, multi-crew aircraft in both civil and military aviation markets.

This strategic expansion into commercial freight comes at a time when the aviation industry is grappling with structural pilot shortages and a surging demand for cargo capacity. By targeting the commercial sector, Merlin aims to leverage its extensive military testing to provide a certified, off-the-shelf autonomous copilot for existing and future cargo fleets.

The Condor Product Family and Merlin Pilot

AI-Powered Flight Operations

At the core of the new Condor product family is the Merlin Pilot, which the company describes as an aircraft-agnostic, “takeoff to touchdown” autonomy system. According to the press release, the system utilizes a comprehensive suite of sensors and cameras that feed real-time data into advanced flight computers. This allows the AI to manage complex aircraft systems and monitor the surrounding airspace for potential hazards.

Furthermore, Merlin notes that the system is capable of communicating directly with Air Traffic Control (ATC). The Merlin Pilot utilizes voice and natural language processing algorithms to handle routine radio transmissions, a feature designed to significantly reduce the cognitive load on human operators.

Human-Machine Teaming

Rather than entirely replacing human crews in the near term, the Merlin Pilot is built around the concept of human-machine teaming. The company states that the system works alongside human pilots in real-time, taking over routine flight management tasks so crews can focus on high-level strategic decision-making. Notably, the AI copilot is equipped to monitor human pilots for signs of fatigue and inattention, allowing the system to determine if immediate automated assistance is required.

“For a hundred years, aviation has been built, fundamentally, around human crews. We believe its next hundred years will be built around autonomy,” said Matt George, CEO and Founder of Merlin, in the company’s announcement.

Market Dynamics Driving Aviation Autonomy

Fleet Growth and Pilot Shortages

Merlin’s push into the commercial sector is heavily influenced by current macroeconomic trends. Citing market projections from Boeing, the press release highlights that the global fleet of large Cargo-Aircraft is expected to expand from approximately 2,340 today to nearly 3,900 over the next two decades. To meet this demand, the industry will require more than 2,800 production and conversion deliveries.

However, this growth is threatened by an ongoing, structural pilot shortage. Merlin points out that traditional operating models, which require multiple pilots to manage all in-flight tasks, are becoming increasingly difficult for cargo operators to scale under current labor constraints.

The Passenger-to-Freighter (P2F) Opportunity

To integrate its technology into the commercial market, Merlin is specifically targeting the Passenger-to-Freighter (P2F) conversion sector, which the company notes is currently operating at record volumes. Integrating autonomous systems while airframes are already being rebuilt presents a highly efficient window of opportunity.

“The pilot shortage is structurally impacting operators and comes at a time when the conversion market is at record volume,” noted George. “The window to integrate autonomy… is open, making this a particularly pivotal moment.”

Military Foundations and Regulatory Progress

USSOCOM and Flight Testing Milestones

Merlin’s commercial ambitions are underpinned by its established defense contracts. The core technology powering the Merlin Pilot is currently undergoing military airworthiness testing with the U.S. Special Operations Command (USSOCOM) for integration into the C-130J aircraft. According to the release, Merlin holds an Indefinite Delivery, Indefinite Quantity (IDIQ) contract with USSOCOM that features a ceiling value of $105 million.

The company reported several recent developmental milestones. In March 2026, Merlin successfully completed the Preliminary Design Review (PDR) for the C-130J program. Following this, in April 2026, the company executed its first fully automated takeoffs on fixed-wing aircraft during test flights in both the United States and New Zealand.

Civil Certification and Strategic Partnerships

On the regulatory front, Merlin is actively advancing its civil certification program. The company states it is working closely with the New Zealand Civil Aviation Authority (CAA) in partnership with the U.S. Federal Aviation Administration (FAA) to certify the system for FAA Part 25 civil aircraft, such as the Boeing 737 and Airbus A320.

To accelerate commercialization, Merlin announced a memorandum of understanding with World Star Aviation, a prominent freighter lessor. This partnership is intended to advance the commercial development of the Condor product line and establish frameworks for integrating the Merlin Pilot into converted commercial cargo airframes.

“Condor represents our approach to scaling autonomy across large, multi-crew aircraft… It’s being built to certify, advancing on real military aircraft with real regulators, and is designed to integrate into the aircraft operators already own,” George stated.

AirPro News analysis

We note that Merlin’s recent transition to a publicly traded company via a SPAC merger has provided it with significant capital market visibility. As of mid-May 2026, the company carries a market capitalization of approximately $1 billion. While Merlin’s trailing twelve-month revenue stands at $7.55 million, this figure represents a massive 514% year-over-year growth rate, driven almost entirely by its defense sector contracts.

At AirPro News, we observe that leveraging military-funded research and development to subsidize the notoriously high costs of civil aviation certification is a proven aerospace strategy. If Merlin can successfully navigate the FAA and New Zealand CAA certification pathways, its early partnerships with major lessors like World Star Aviation could position the company as a first-mover in the lucrative P2F autonomous upgrade market.

Frequently Asked Questions

What is the Merlin Pilot?

According to the company, the Merlin Pilot is an AI-powered, aircraft-agnostic autonomy system designed to manage flight operations from takeoff to touchdown, including communicating with Air Traffic Control.

Which aircraft can use the Condor product family?

Merlin states that the Condor line is targeted at large, multi-crew aircraft. Initial target airframes include military transports like the C-130J Hercules, as well as commercial FAA Part 25 aircraft such as the Boeing 737 and Airbus A320.

Is the Merlin Pilot meant to replace human pilots?

In its current iteration, the system is designed for human-machine teaming. It aims to facilitate reduced-crew operations by handling routine tasks and monitoring human pilots for fatigue, allowing the human crew to focus on high-level decision-making.


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Photo Credit: Merlin

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