Aircraft Orders & Deliveries
Air Niugini Begins Fleet Modernization with First Airbus A220 Delivery
Air Niugini starts PNG’s largest fleet upgrade with Airbus A220s, enhancing efficiency, connectivity, and sustainability across domestic and regional routes.
Air Niugini’s recent acquisition of its first Airbus A220 marks a pivotal moment in Papua New Guinea’s aviation landscape. This delivery represents the beginning of a comprehensive fleet renewal program, the largest aviation investment in the nation’s 52-year history. The new A220-300, known as the “People’s Balus,” arrives amid Papua New Guinea’s 50th Independence Anniversary, symbolizing the country’s determination to modernize its critical infrastructure and enhance national and regional connectivity. The ambitious re-fleeting initiative, spanning from 2025 to 2028, involves the procurement of 11 Airbus A220s and two Boeing 787-8 Dreamliners, aiming to replace Air Niugini’s aging Fokker fleet and improve operational efficiency and reliability.
This program is more than an aircraft swap; it reflects Papua New Guinea’s strategic vision to strengthen its standing in the Pacific aviation sector. By addressing chronic delays, high maintenance costs, and connectivity limitations, Air Niugini’s fleet modernization is expected to have far-reaching impacts on economic development, trade, tourism, and community integration across the archipelagic nation.
Founded in November 1973, Air Niugini emerged as Papua New Guinea’s national airline, with the government holding a majority stake and Australian airlines Ansett, Qantas, and Trans Australia Airlines sharing the remainder. The airline’s mission was clear: to foster regional development in a country with limited road infrastructure, initially using DC-3 and Fokker F27 aircraft to connect remote communities.
After independence in 1975, Air Niugini faced significant hurdles, including a critical pilot shortage as expatriate pilots returned to Australia. The airline responded by recruiting and training new pilots from Australia and New Zealand, who soon adapted to the challenging PNG environment and helped expand the airline’s reach, including taking over international routes previously served by Qantas.
Air Niugini quickly became a symbol of national unity and progress, exceeding expectations by transporting 350,000 passengers in its first year. The airline expanded internationally by 1975 and, despite financial challenges, especially during the 1990s, achieved profitability by 2003. By 2016, Air Niugini operated flights to 35 cities with a fleet of 33 aircraft, underpinning its role in supporting tourism, trade, agriculture, fisheries, and extractive industries.
The current fleet modernization is the most substantial capital investment in PNG’s aviation history, with a re-fleeting program valued at approximately NZ$2 billion from 2025 to 2028. Air Niugini is acquiring 13 new aircraft: 11 Airbus A220s (a mix of A220-100s and A220-300s) and two Boeing 787-8 Dreamliners. Financing comes from a consortium that includes the PNG government, Asian Development Bank (ADB), U.S. Export-Import Bank, and Export Finance Australia.
The ADB’s $140 million financing package is a testament to international confidence in PNG’s aviation sector. The funding structure involves both direct purchases and leases, with five aircraft leased and eight purchased outright, balancing operational flexibility and capital deployment. Managing Director Gary Seddon has described the investment as a strategic move to position PNG as a significant player in the Pacific aviation market, while addressing operational challenges caused by the aging Fokker fleet.
Air Niugini’s procurement strategy includes firm orders for eight A220-100s from Airbus and three A220-300s leased from Azorra, a U.S.-based lessor. This mixed approach optimizes the airline’s financial structure and supports its forecast of strong market growth. The expansion from an initial six A220s to eight reflects confidence in the aircraft’s capabilities and the potential for aviation-driven economic development in PNG. The Airbus A220 is a major technological leap for Air Niugini, offering advanced design, increased fuel efficiency, and enhanced passenger comfort. The A220-300 seats 138 passengers, while the A220-100 seats 113, both significant upgrades over the Fokker 70 and 100 models. Powered by Pratt & Whitney’s GTF engines, the A220 delivers a 25% reduction in fuel consumption and carbon emissions per seat compared to previous-generation aircraft.
The A220’s range of up to 3,600 nautical miles allows for non-stop service throughout PNG and beyond, and its ability to operate from shorter runways makes it suitable for the country’s diverse airport infrastructure. Environmental benefits include 50% lower noise levels and 25% less CO2 emissions, with certification for up to 50% Sustainable Aviation Fuel (SAF) use, supporting both operational cost savings and PNG’s sustainability goals.
Passenger amenities are also upgraded, with wider cabins, larger windows, spacious overhead bins, and onboard WiFi, enhancing comfort and satisfaction. These improvements are expected to support Air Niugini’s efforts to boost tourism and business travel.
“The A220’s fuel efficiency, range, and environmental performance are a game-changer for Air Niugini and for aviation in Papua New Guinea.” — Airbus Press Release
Airbus’s technical evaluation confirms that all 15 major domestic airports served by Air Niugini’s Fokker fleet can accommodate the A220, ensuring continuity of service during the fleet transition. These airports include Port Moresby, Lae, Kavieng, Manus, Alotau, Mt Hagen, Rabaul, Vanimo, Buka, Goroka, Kimbe, Wewak, Madang, and Kieta. The A220’s compatibility with existing infrastructure enables Air Niugini to maintain essential connectivity across PNG’s challenging geography.
Some airports may require operational adjustments, such as payload or fuel limits, due to runway constraints. However, the A220’s efficiency means that even with restrictions, it can match or exceed the capabilities of the Fokker fleet. The initial operational focus will be on five upgraded airports: Jacksons (Port Moresby), Nadzab Tomodachi (Lae), Kavieng, Momote (Manus), and Gurney (Alotau), all meeting national and international safety standards.
The phased introduction of the A220s, starting in September 2025 and continuing through 2028, allows time for crew training, maintenance preparation, and operational integration. This approach minimizes service disruptions and supports a smooth transition to the new fleet.
The fleet modernization occurs amid challenging economic conditions, including currency depreciation, foreign exchange shortages, and inflation. PNG has responded with financial sector reforms and secured international assistance, helping alleviate constraints that previously affected Air Niugini’s operations. With 75% of operational costs in US dollars, the airline is particularly sensitive to currency fluctuations.
The new aircraft are expected to lower operational costs through improved fuel efficiency and reliability, supporting the airline’s goal to reduce travel costs for passengers and enhance economic integration. Prime Minister James Marape has called the A220 program a landmark moment, aligning aviation modernization with national development priorities and emphasizing the government’s commitment to safe, affordable, and modern air transport. Improved aviation connectivity is critical for PNG’s economic sectors, including mining, tourism, agriculture, and fisheries. The ADB’s investment underscores the international recognition of aviation’s role in driving economic growth and job creation in the Pacific.
Air Niugini’s A220 acquisition aligns with global trends toward fuel-efficient, sustainable aircraft. The Asia-Pacific region is leading global aviation growth, with projections for airline revenues to exceed $1 trillion in 2025. The region is also adding more airline capacity than all others combined, despite ongoing challenges in mature markets.
Structural dynamics such as lower oil prices, rising maintenance and labor costs, and aircraft delivery backlogs have made fleet planning more complex. Lease rates for new aircraft have risen significantly, and airlines are extending the operational life of existing fleets. Air Niugini’s mixed purchase and leasing strategy for the A220s is a strategic response to these market realities.
The global A220 program is well established, with over 940 orders and 440 deliveries as of August 2025. Air Niugini is the 25th operator worldwide, joining a community of airlines leveraging the A220’s efficiency and versatility. The Asia-Pacific’s aviation recovery and projected passenger growth further position Air Niugini to benefit from regional expansion and increased connectivity.
The A220’s environmental performance is a cornerstone of Air Niugini’s modernization. The aircraft’s 25% reduction in carbon emissions and 50% lower noise levels support PNG’s environmental commitments and reduce operational costs. The ability to operate with SAF and advanced materials further enhances sustainability and positions the airline for future regulatory requirements.
Noise reduction is particularly important for airports near populated areas, supporting community relations and potential operational flexibility. The environmental benefits also extend to improved operational efficiency, including fewer fuel stops and optimized flight planning.
These sustainability gains align with PNG’s broader development goals, as the country seeks to balance economic growth with environmental stewardship and attract eco-conscious travelers.
Air Niugini’s introduction of the Airbus A220 is a transformative step in Papua New Guinea’s aviation journey. The fleet modernization program not only addresses operational and financial challenges but also positions the airline, and the nation, for regional competitiveness and sustainable growth. The A220’s technical advantages, environmental benefits, and enhanced passenger experience are expected to deliver long-term value for PNG’s economy and society. Looking ahead, the success of this initiative will depend on effective implementation, including crew training, maintenance readiness, and operational integration. Air Niugini’s experience may serve as a model for other Pacific carriers, reinforcing the importance of strategic fleet renewal in supporting connectivity, economic development, and environmental responsibility across the region.
Question: What is the significance of Air Niugini’s new Airbus A220?
Answer: The A220 represents a major step in modernizing PNG’s aviation sector, improving efficiency, reliability, and environmental performance, while supporting national development and connectivity.
Question: How was the fleet modernization financed?
Answer: The NZ$2 billion program is financed through a combination of government funds and international partners, including the Asian Development Bank, U.S. Export-Import Bank, and Export Finance Australia.
Question: Will the new aircraft affect Air Niugini’s domestic and international routes?
Answer: All major domestic airports and existing international routes are compatible with the A220, ensuring continuity and potential for future route expansion.
Question: What are the environmental benefits of the A220? Answer: The A220 reduces carbon emissions by 25%, noise by 50%, and is capable of operating on sustainable aviation fuels, supporting PNG’s environmental goals.
Question: How does the A220 improve passenger experience?
Answer: Passengers benefit from a more spacious cabin, larger windows, improved overhead storage, and onboard WiFi, enhancing comfort and satisfaction.
Sources:
Air Niugini’s Historic Fleet Modernization: The Delivery of Papua New Guinea’s First Airbus A220
Background: Air Niugini’s Historical Context and Strategic Evolution
The Fleet Modernization Program: Strategy and Investment
Technical Specifications and Capabilities of the Airbus A220
Operational Impact and Network Implications
Economic and Strategic Context in Papua New Guinea
Industry Context and Global Aviation Trends
Environmental and Sustainability Considerations
Conclusion and Future Outlook
FAQ
Airbus Press Release,
Air Niugini
Photo Credit: Air Niugini
Aircraft Orders & Deliveries
Airbus Begins Ground Testing of New A350F Freighter Model
Airbus initiates ground testing for the A350F freighter, focusing on new cargo systems and compliance with 2027 ICAO emissions standards.
This article is based on an official press release from Airbus.
Airbus has officially commenced ground testing for its new A350F freighter, marking a critical milestone in the aircraft’s journey to market. According to a recent company press release, the testing phase takes place during final assembly and evaluates a wide array of new and heavily modified systems designed specifically for heavy Cargo-Aircraft operations.
The introduction of the A350F represents a significant engineering challenge for the European aerospace manufacturer. Airbus noted that the complexity of bringing this new variant to market is most evident in the rigorous ground testing required before the aircraft can take to the skies.
To streamline the development of the A350F, Airbus implemented a collaborative strategy early in the aircraft’s lifecycle. According to the official release, close cooperation between the Final Assembly Line (FAL) Ground Test Design and Chief Engineering teams began as early as 2021, during the freighter’s definition phase.
“The goal was to share FAL testability constraints so they could be taken into account from the preliminary aircraft design stage…”
This “co-design” approach allowed engineers to integrate testing requirements directly into the preliminary design of the aircraft, ensuring a smoother transition into the final assembly and testing phases.
The A350F is not merely a passenger jet with the seats removed; it features numerous systems that are either completely new or have undergone major modifications. The manufacturer stated that these changes are largely concentrated in the cabin and cargo areas, necessitating the development of specialized ground tests.
According to Airbus, key new systems currently undergoing testing include:
Airbus distinguishes between one-off development tests and “serial ground tests,” which check the conformity of systems integration for each specific aircraft off the production line. The company revealed that out of approximately 200 serial ground test instructions for the standard A350 passenger aircraft, as much as 40 percent have been specifically created or modified for the A350F.
In addition to its cargo capabilities, the A350F is being positioned as a highly efficient alternative to aging freighter fleets. Airbus highlighted that the A350F is the only new-generation freighter designed from the outset to meet the enhanced ICAO carbon dioxide emissions standards set to take effect in 2027. The company claims the aircraft will achieve at least a 20 percent reduction in fuel burn and carbon emissions compared to competitor aircraft. Furthermore, the press release noted that the A350F will be capable of operating with up to 50 percent SAF at its entry into service, with Airbus aiming for 100 percent SAF capability by 2030.
We view the extensive modification of ground test instructions, affecting 40 percent of the standard A350 procedures, as a clear indicator of the significant engineering divergence between the A350F and its passenger counterpart. By integrating testability constraints as early as 2021, we believe Airbus is actively working to mitigate production bottlenecks that often plague new aircraft programs. The emphasis on the 2027 ICAO emissions standards also highlights Airbus’s strategic positioning, leveraging environmental compliance as a key selling point in a market projected to require over 900 new freighters by 2044.
The A350F is a new-generation freighter variant of the Airbus A350 passenger aircraft, specifically designed for heavy cargo operations with a large main-deck door and specialized loading systems.
According to Airbus, new systems include a main-deck cargo door, an anti-tail-tipping warning system, a dedicated courier area for up to 10 occupants, and a ‘Smart Freighter’ connectivity system.
Airbus states that the A350F is designed to meet the 2027 ICAO emissions standards, offering at least 20 percent lower fuel burn than competitors. It will also be capable of flying on 50 percent Sustainable Aviation Fuel (SAF) at launch, with a goal of 100 percent by 2030.
A ‘Co-Design’ Approach to Ground Testing
New Systems and Cargo Innovations
Meeting Future Environmental Standards
AirPro News analysis
Frequently Asked Questions
What is the Airbus A350F?
What new systems are being tested on the A350F?
How does the A350F address environmental concerns?
Sources
Photo Credit: Airbus
Aircraft Orders & Deliveries
Shandong Airlines Leases 10 Boeing 737 Jets in $405M Deal
Shandong Airlines, an Air China subsidiary, leases 10 Boeing 737 jets for $405 million to modernize its fleet amid US-China trade dynamics.
Shandong Airlines, a subsidiary of China’s flagship carrier Air China, has agreed to lease 10 Boeing 737 aircraft in a transaction valued at approximately 2.88 billion yuan (US$405 million). According to reporting by the South China Morning Post, the deal was officially disclosed in a notice issued by Air China to the Shanghai Stock Exchange on Thursday, March 26, 2026.
The agreement arrives at a highly sensitive juncture for US-China trade relations, coming just weeks before a planned diplomatic visit to Beijing by US President Donald Trump. As Chinese carriers work to modernize their aging fleets, this lease highlights the ongoing reliance on Western aerospace manufacturers despite broader geopolitical headwinds and supply chain constraints.
We note that this Boeing deal also surfaces amid fierce competition from European rival Airbus, which recently secured a massive narrowbody order from another major Chinese airline, underscoring the intense battle for market share in one of the world’s most critical aviation markets.
The $405 million transaction involves a mix of previous-generation and current-generation narrowbody jets. Based on the Shanghai Stock Exchange filing cited by the South China Morning Post, Shandong Airlines has structured the leases across varying timeframes to meet its operational needs. The carrier will lease three Boeing 737-800 jets on 10-year terms, another three 737-800 jets on 11-year terms, and four newer Boeing 737 Max Commercial-Aircraft on 12-year leases.
Deliveries of the 10 aircraft are scheduled to occur in batches over the next two years. The stated purpose of the acquisition, according to the corporate filing, is to refresh the carrier’s aging fleet and expand future operational capacity.
“The announcement signals China’s continued demand for American aviation products to refresh its aging domestic fleet,” according to supplementary industry research. The timing of the lease is highly notable. The South China Morning Post and supplementary industry data indicate that the announcement precedes US President Donald Trump’s anticipated state visit to China, where he is expected to discuss trade issues with Chinese President Xi Jinping. Historically, Beijing has utilized large-scale aviation agreements as a diplomatic mechanism to help balance its significant bilateral trade deficit with the United States.
During President Trump’s previous state visit to China in 2017, Beijing agreed to purchase 300 Boeing jets. While this 10-aircraft lease by Shandong Airlines is significantly smaller in scale, it serves as a notable development in bilateral trade ahead of the upcoming high-level talks.
The broader geopolitical landscape has also shifted the timeline for these crucial trade discussions. Originally scheduled for early April 2026, Washington postponed the presidential trip to mid-May 2026. Industry research attributes this delay to the outbreak of the US-Israel war on Iran, which commenced on February 28, 2026. This conflict has created ripple effects across the globe, forcing diplomatic reshuffling and delaying key US-China negotiations. Boeing’s $405 million lease agreement stands in stark contrast to recent victories by its primary competitor in the region. Just two days prior to the Shandong Airlines announcement, China Eastern Airlines revealed a massive $15.8 billion order for 101 Airbus A320neo-family aircraft on March 25, 2026.
According to industry data, the Airbus jets are slated for delivery between 2028 and 2032. This timeline suggests that Chinese carriers are aggressively securing late-decade capacity slots, locking in future growth with the European manufacturer. In late 2025 and early 2026, several other Chinese carriers, including Air China and Spring Airlines, also placed substantial Orders for Airbus narrowbody jets.
While Chinese Airlines continue to rely heavily on Boeing and Airbus, the domestic aerospace sector is slowly maturing. China is actively integrating its domestically produced COMAC C919 narrowbody jets into commercial service. However, current production rates for the C919 lag behind the immediate fleet modernization needs of the country’s airlines. This production gap necessitates continued reliance on Western aircraft manufacturers to maintain capacity in the near term.
At AirPro News, we view this 10-aircraft lease as a pragmatic, rather than purely political, move by Air China and its subsidiary. While the timing ahead of US-China trade talks is convenient and certainly carries diplomatic weight, the modest scale of the deal, especially when juxtaposed with the 101-aircraft Airbus order announced the same week, suggests that Boeing still faces an uphill battle in reclaiming its historical market dominance in China.
Furthermore, the specific mix of older 737-800s and newer 737 Max jets indicates an urgent need for immediate, reliable capacity. As COMAC works to ramp up C919 production over the next decade, Chinese carriers are forced into a delicate balancing act. They must utilize leased Boeing and Airbus aircraft to bridge the operational gap until domestic Manufacturing can fully meet the surging demand of the Chinese travel market.
How much is the Shandong Airlines Boeing lease worth?
The transaction is valued at 2.88 billion yuan, which is approximately US$405 million.
What types of aircraft are included in the deal? The lease includes a total of 10 narrowbody jets: three Boeing 737-800s on 10-year leases, three 737-800s on 11-year leases, and four Boeing 737 Max aircraft on 12-year leases.
When will the planes be delivered?
According to the Shanghai Stock Exchange filing, the aircraft will be delivered in batches over the next two years.
Why was the US presidential visit to China postponed?
Originally scheduled for early April 2026, the visit was postponed to mid-May 2026 due to the outbreak of the US-Israel war on Iran in late February 2026.
Deal Specifics and Fleet Modernization
Breakdown of the Boeing Lease
Geopolitical Context and Trade Diplomacy
Timing Ahead of Presidential Visit
Global Conflicts Impacting Timelines
The Competitive Landscape in China
Airbus Secures Major China Eastern Order
The Role of COMAC
AirPro News analysis
Frequently Asked Questions
Sources
Photo Credit: byeangel
Aircraft Orders & Deliveries
AerFin Sells GE Aerospace CF6-80 Engine to Japanese Investor
AerFin completes sale of GE Aerospace CF6-80 engine to Japanese investor, reflecting strong demand for mature aviation assets in Japan’s cargo market.
This article is based on an official press release from AerFin.
On March 24, 2026, UK-based aviation asset management specialist AerFin announced the successful sale of a GE Aerospace CF6-80 commercial aircraft engine to an undisclosed Japanese investor. According to the company’s official press release, this transaction highlights the robust and ongoing demand from the Japanese aviation finance market for mature, proven aerospace assets.
The deal underscores a broader industry trend where legacy passenger equipment is finding lucrative, long-term utility in the global air freight sector. By matching Eastern capital with Western aviation assets, AerFin continues to solidify its position as a vital bridge in the international aviation finance ecosystem.
We note that this transaction is not just a standard asset sale; it represents a strategic alignment of capital preservation and operational longevity. Japanese investors have long favored assets that offer stable, predictable returns, and the CF6-80 engine fits this profile perfectly due to its extensive use in the booming cargo market.
To understand the financial appeal of this transaction, it is essential to look at the asset itself. Manufactured by GE Aerospace, the CF6 engine family is recognized as one of the longest-running and most successful commercial jet engine programs in aviation history. Industry data cited in the provided research report indicates that over 8,500 units have been delivered since the program’s inception. The CF6-80 series, introduced in the 1980s, has served as the primary powerplant for major widebody aircraft, including the Boeing 747, Boeing 767, Airbus A300, and Airbus A330.
While newer, more fuel-efficient engines have largely replaced the CF6 in modern passenger fleets, the CF6-80 has found a highly profitable second life in the air cargo-aircraft market. According to market data included in the research report, over 70% of the active CF6-80C2 fleet is currently utilized to propel dedicated cargo aircraft.
Driven by the global surge in e-commerce and subsequent freighter conversions, GE Aerospace projects that the CF6-80 fleet will remain in active service well past the year 2050. Its low maintenance costs and proven reliability make it a low-risk, high-reward asset for foreign investors seeking long-term value.
Japan remains one of the most established and sophisticated aviation investment markets globally. According to financial industry context provided in the research report, Japanese investments in commercial aviation are typically executed through specialized financial structures known as the Japanese Operating Lease (JOL) or the Japanese Operating Lease with Call Option (JOLCO). These structures allow Japanese corporations, small-to-medium enterprises (SMEs), and high-net-worth individuals to fund the acquisition of aircraft and engines. In return, these investors benefit from stable lease rental income paid by operators, potential capital gains from the asset’s residual value, and significant tax advantages, such as accelerated depreciation under Japanese tax regulations. Because these investments rely heavily on the residual value of the asset at the end of a lease term, Japanese investors strongly prefer proven, widely adopted equipment like the CF6 engine, which carries significantly lower technological and market risk than unproven platforms.
Founded in 2010 and headquartered in Caerphilly, Wales, AerFin specializes in buying, selling, leasing, and repairing aircraft, engines, and parts. The company’s press release and corporate background data note that AerFin serves over 600 customers across six continents, including major airlines and Maintenance, Repair, and Overhaul (MRO) organizations.
The company has actively expanded its footprint in the Japanese aviation sector. Recently, AerFin acquired Boeing 777-300ER aircraft previously operated by Japan Airlines, further demonstrating its capability to manage complex international fleet transitions.
“We continue to see strong appetite from Japanese investors for mature, proven engine platforms. This transaction reflects both the enduring appeal of the CF6 and our capability to structure and deliver assets that align with investor expectations.”
This statement was provided in the press release by Auvinash Narayen, Chief Investment Officer at AerFin. Narayen, who joined the company as its second employee in 2011, was promoted to CIO in April 2024 to oversee AerFin’s global investment strategies.
We view this transaction as a prime indicator of the current health of the mid-life aviation asset market. The global boom in e-commerce has created an insatiable demand for dedicated freighters, which in turn extends the operational lifecycle of mature engines like the CF6-80. By trading and extending the life of these mature engines, companies like AerFin and their financial backers are maximizing the operational lifecycle of existing aviation assets. This not only provides excellent financial yields through JOL/JOLCO structures but also supports industry sustainability by keeping reliable, existing hardware in the air rather than prematurely retiring it. The bridge between Eastern capital and Western aviation operations remains a critical artery for global fleet management.
A Japanese Operating Lease with Call Option (JOLCO) is a financial structure used heavily in aviation finance. It allows Japanese investors to fund aircraft or engine acquisitions, providing them with tax benefits (like accelerated depreciation) and stable lease income, while offering the airline or operator an option to purchase the asset at a later date.
The GE Aerospace CF6-80 is highly regarded for its long history of reliability and relatively low maintenance costs. Because cargo aircraft typically fly fewer hours per day than passenger jets, operators prefer mature, lower-capital-cost engines that are proven workhorses, making the CF6-80 an ideal fit.
AerFin is a UK-based global aviation asset management company founded in 2010. They specialize in the supply of aftermarket aircraft and engine parts, as well as leasing and trading whole assets, serving over 600 customers worldwide. Sources:
The Enduring Appeal of the CF6-80 Engine
A Legacy of Reliability
A Second Life in Air Freight
Japanese Investment in Aviation Assets
Understanding JOL and JOLCO Structures
AerFin’s Strategic Growth and Market Position
Connecting Global Markets
AirPro News analysis
Frequently Asked Questions (FAQ)
What is a JOLCO?
Why is the CF6-80 engine popular for cargo aircraft?
Who is AerFin?
Photo Credit: GE Aerospace
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