Will
Jet- Sahara Deal Hurt Competition?
Infrastructure Allocation Main Concern
Jeh Wadia, Managing Director GoAir |
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| January 23, 2006
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| Economic
Times, Mumbai/Ahmedabad/Bangalore/Chennai/Hyderabad/Delhi/
Kolkata/ Pune: FAR
as the acquisition of Air Sahara by Jet Airways
goes, I have no concern on the business transaction.
In fact, it is a value proposition for Jet Airways
from every perspective — financial, strategic
(as it will allow Jet Airways to fly into America,
in which it has had a problem), commercial,
operational, technical, HR and infrastructure.
In short, they have the same aircraft, same
engineering, same pilots, same ground handling
equipment; they fly similar routes and therefore,
the acquisition makes utmost sense. |
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My
major concern is with the consolidation of infrastructure,
post-acquisition. India has a shortage of infrastructure
especially in terms of night parking, take-off
and landing slots and check-in counters. Take
night parking, for example. A new airline requires
minimum of six aircraft in a base in order to
achieve economies of scale. Due to lack of infrastructure,
we are forced to park six aircraft in three
different bases, thereby creating a higher cost
structure for the airline. |
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Internationally,
the difference between a low-cost carrier (LCC)
and full service carrier (FCC), in terms of
cost, is about 60-65%. In India, we have only
a cost difference of about 35%. The main reason
for this is that internationally there is a
separate policy framework for FCCs and LCCs,
wherein essentially for LCCs, they have lower
parking/landing/navigational charges. In addition,
they also have low cost terminals that offer
less frills but also lower costs. |
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| Even the secondary
airports are adjacent to the main one, thereby,
having lower costs than the main one. This gives
significant advantage to a LCC. In India, we do
not have such a competitive advantage. We should
not be further disadvantaged by not having the
ability to create economies of scale, thereby,
offering consistently low fares benefiting our
people. |
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To
sum up, my concern is with the existing allocation
of infrastructure, post-acquisition and under
development. No doubt the government will transparently
allocate this infrastructure fairly, thereby,
creating a neutrally competitive environment. |
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| GoAir
Spreads Its Wings, Offers Free Tickets On New
Routes |
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| January 22/23,
2006 |
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| Sunday
Express, New Delhi / Mumbai: Low-cost
airline GoAir is adding more routes. In February,
the airline plans to connect four more cities
to Mumbai, namely Baroda, Kochi, Indore and
Pune. It also intends to launch two new sectors,
Chennai-Pune-Chennai and Ahmedabad-Pune-Ahmedabad.
As a promotional offer, GoAir is offering 10,000
free tickets (strictly speaking, not free, as
you have to pay a tax of Rs 221) on these new
routes per month for the next three months.
Bookings will stay open till March 26.
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| Go
Air To Begin Operations From City Soon |
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| January 21,
2006 |
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Indian
Express, Express News Service, Pune:
Go Air has also announced plans to start daily
flights from Pune to Ahmedabad and Chennai.
The airlines will operate the Airbus A320 aircraft
on the route. As an inaugural incentive, the
airline is providing 10,000 free tickets to
its new destinations. Bookings for the ‘GoAir
FreeFares’ have already started and will
be valid till March 26 on a ‘first come
first serve’ basis till stocks last. |
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Meanwhile,
Go Air has also announced plans to start daily
flights from Pune to Ahmedabad and Chennai.
The airlines will operate the Airbus A320 aircraft
on the route. As an inaugural incentive, the
airline is providing 10,000 free tickets to
its new destinations. Bookings for the ‘GoAir
FreeFares’ have already started and will
be valid till March 26 on a ‘first come
first serve’ basis till stocks last. |
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| Passengers
can make their booking from any of the GoAir
Outlets that include GoTravelAgents, GoTATAIndicom
Shops, GoInlott, GoCyber Cafis, GoCall Centre,
GoPCOs, Internet and the GoAirport Office. |
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GoAir To Start
Services To Baroda, Kochi, Pune, Indore
To Offer 10,000 Free Tickets On New Sectors
New Services To Beef Up Route Strength To 14 Cities |
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| January 20,
2006 |
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The
Hindu Business Line, Mumbai: GOAIR,
the low-cost carrier promoted by the Wadia Group,
will launch services to four new destinations
- Baroda, Kochi, Pune and Indore - from February1.
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With
its third A320 aircraft in place, the airline
will also enter two new sectors - Chennai-Pune-Chennai
and Pune-Ahmedabad-Pune - next month. |
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Continuing
with its earlier practice of providing free
tickets on the launch of operations to new destinations,
GoAir FreeFares will offer 10,000 free tickets
to the four new destinations and on the two
sectors to be launched next month. |
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Bookings
on GoAir FreeFares commenced on January 16,
and are valid every day till March 26, on a
`first-come first-serve' basis. Passengers availing
themselves of the free fares will get a `zero
fare' and will only have to pay taxes amounting
to Rs 221. |
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GoAir
FreeFares was earlier offered on the Mumbai,
Ahmedabad, Coimbatore, Goa, Chennai, Hyderabad,
Bangalore and Jaipur routes. |
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According
to an official statement, the launch of the
new operations would increase GoAir's route
strength to 14 cities and 30 flights a day,
connecting important business and leisure destinations
within the country. Its existing destinations
are Mumbai, Goa, Ahmedabad, Coimbatore, Hyderabad,
Bangalore, Chennai and Jaipur. |
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The
statement quoting Mr Jeh Wadia, Managing Director,
GoAir, said: "During the next nine months
from January to September, we would aggressively
look at route expansion. The addition of new
routes endorses our commitment to our passengers
and will enhance the business and tourist potential
of these centres." |
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Mr Wadia said
the airline planned to acquire seven aircraft
by September 2006. "We are exploring options
to commence operations from cities such as Thiruvananthapuram,
Nagpur, Bhubaneshwar, Srinagar, Jammu, Delhi
and Kolkata. However, all this will be in a
phased manner," he said. |
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The airline
will also enter two new sectors - Chennai-Pune-Chennai
and Pune- Ahmedabad-Pune. |
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| 10,000
Free Tickets + 4 New Cities |
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| January 18, 2006 |
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Financial
Express, PTI, Mumbai: Wadia Group-promoted
no-frills airline Go Air on Wednesday said it
would start services to the cities of Baroda,
Indore, Kochi and Pune and two sectors -- Chennai-Pune
and Ahmedabad-Pune -- in February. |
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With
the addition of these new destinations and sectors,
the airline would increase its route strength
to 14 cities across the country with 30 flights
a day, a go Air release said here today.
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The airline
presently operates to ten cities. |
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Go Air also
announced 10,000 free tickets on its new destinations,
it said, adding the bookings would commence
on January 16 and opened till march 26. |
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| The carrier
operates two Airbus A-320 aircraft with a single
class, 180-seat configuration, and plans to
expand its fleet to 36 aircraft in the next
three years. |
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| GoAir
To Expand Flight Routes |
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| January 16, 2006 |
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Business
Standard, P R Sanjai - Mumbai: GoAir,
the Wadia group-promoted low-cost airline, is
planning to fly to six more destinations from
February 1 and will offer 10,000 free tickets
to these new sectors. |
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The
airline’s routes would be in the order
Mumbai-Baroda-Mumbai, Mumbai-Kochi-Mumbai, Mumbai-Pune-Mumbai,
Mumbai-Indore-Mumbai, Chennai-Pune-Chennai and
Pune-Ahmedabad-Pune. |
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Confirming
the news, Jeh Wadia, the managing director of
GoAir, said the bookings for the new sectors
would start on January 16. |
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He
added that the no-frills airline would connect
14 destinations. Everyday, the airline would
have more than 30 flights. The airline has at
its disposal three A320 aircraft. Right now,
GoAir operates 18 flights in a day and connects
to eight destinations. |
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“GoAir
is also exploring plans to start operations
from cities such as Thiruvananthapuram, Nagpur,
Bhubaneswar, Srinagar, Jammu, Delhi and Kolkata,”
Wadia said. |
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The airline
has tied up with public call offices (PCOs)
and cyber cafes for selling tickets. “Passengers
can make their bookings from any of the GoAir
outlets including travel agents, Tata Indicom
shops, Inlott centres, cybercafes, call centres,
PCOs, the internet and GoAirport office,”
he added. |
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Wadia said
the airline was in talks with aircraft manufacturers
– Boeing and Airbus – for acquiring
50 aircraft by 2008 and negotiations would conclude
soon. |
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He also said,
“We are evaluating the aviation scenario
in India in light of the proposed strategic
tie-up between Jet Airways and Air Sahara.”
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| With a clear focus on reducing costs
the airline is looking at various other modes
of distribution. |
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| Asked about
GoAir’s proposed cargo venture, Wadia
informed that the cargo and engineering wings
were at the conceptual stage and a final decision
would be taken soon. |
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| GoAir
To Get Its Third A320 |
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January 9, 2006
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DNA
– Mumbai: Jeh Wadia – promoted
GoAir is expected to get the delivery of its
third aircraft (A320) in a fortnight. The budget
carrier, which was launched in October last
year, already has two leased A320s which it
operates on the Mumbai, Bangalore, Chennai,
Jaipur, Coimbatore and Hyderabad routes. |
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| Jeh
Wadia – Gen Next Aviator |
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| January 1, 2006
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Hindustan
Times, Sabarinath M- Mumbai: Entry of
expatriates into the fledgling Indian low-cost
airline sector is showing no signs of respite.
GoAir, promoted by the Wadia group, has recently
hired three expats for key position as part
of efforts to strengthen the top management.
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GoAir has roped in Cor Blokziji for the position
of chief operating officer. Cor Blokziji (55)
is joining GoAir from Fly Niki which has a strategic
alliance with Air Berlin. In January 2004, Air
Berlin has announced cooperation with former
Formula One driver Niki Lauda’s Austria-based
airline Fly Niki. |
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Cor
Blokziji, who will now report to GoAir managing
director Jeh Wadia, is expected to handle the
day-to-day operations of the airline. Bert Stenvert
is also joining the airline from Fly Niki as
vice president (ground operations).
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Bert Stenvert brings in vast experience in
ground operations. |
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Before playing
a key role in the ground operations of Fly Niki,
Bert Stenvert was the head of ground operations
at Vienna Airport. Beate Bauer (40) is the next
person to join GoAir from Fly Niki. She will
take up the key position of administrator in
the Wadia –controlled airline. |
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The hiring
of executives comes close on the heels of GoAir
getting its second Airbus aircraft. GoAir, which
has launched operations on November 4 with an
Airbus A-320 with 180 all-economy seats, is
now flying in the Mumbai-Ahmedabad- Mumbai,
Mumbai- Goa-Mumbai and the Mumbai- Coimbatore-
Mumbai sectors. |
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With the arrival
of the second aircraft, the airline is now readying
for a major route expansion. GoAir plans to
operate services to Chennai, Hyderabad, Bangalore,
Nagpur, Jaipur and Pune. Sources said that the
appointment of top executives is mainly aims
at streamlining the route expansion plan. |
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GoAir, which
intends to expand its fleet to 36 aircraft in
three years, is the third low-cost airline to
take wings after Air Deccan and Spice Jet. |
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The Wadia group
is banking on internal accruals for fleet expansion. |
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| Jeh
Wadia The Industrialist |
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January 1, 2006
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Hindustan
Times – Mumbai: The year 2005 was
an interesting one for me. It’s not every
year that you launch an airline. In 2006, I
plan to take GoAir forward. The idea is to plan
growth strategies for GoAir. And I hope I am
able to create a sustainable and profitable
airline. |
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It
will be an eventful year because we would be
adding new sectors to our network. GoAir will
also be flying to all crucial sector –
Delhi. Taking a lesson from the experience of
the other airlines, we are training our pilots
for landing even in fog conditions in Delhi. |
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On
the Personal front, I wish I have more time
to spend with my wife and two-year old son.
The year is very significant for me and I am
looking forward to the birth of my second child
in May. |
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I
never make New Year resolutions and this year
is no different. |
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| High
Flying Chief |
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January 2006
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"Connectivity"
Is The Buzz Word In Jeh Wadia's No-Frills, Low-cost
Airline Hindu Magazine, Ronita Torcato,
Chennai: ON a hot, muggy afternoon, a large
number of small children ran up and down the
Santa Cruz airport's departure terminal, laughing
and squealing. A chubby little boy, who couldn't
have been more than four or five, chortled happily
in his mother's arms. The children suffer from
cancer, leukemia, cerebral palsy, thalassemia
or Down's syndrome. |
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"Connectivity"
Is The Buzz Word In Jeh Wadia's No-Frills, Low-cost
Airline Hindu Magazine, Ronita Torcato,
Chennai: ON a hot, muggy afternoon, a large
number of small children ran up and down the
Santa Cruz airport's departure terminal, laughing
and squealing. A chubby little boy, who couldn't
have been more than four or five, chortled happily
in his mother's arms. The children suffer from
cancer, leukemia, cerebral palsy, thalassemia
or Down's syndrome. |
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The
children and their parents, 116 in all, had
converged at the airport for a joyride on board
a spanking new plane, the first in a fleet of
36 to comprise the Wadia Group's newest endeavour
— a low cost airline, aptly named GoAir
by Celina, the Australian born wife of its Managing
Director, Jehangir (Jeh) Wadia. |
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Low
profile: The airline is Jeh's brainchild;
the joy ride on GoAir's inaugural flight was
his mother, Maureen's idea. Jeh is the quiet,
unassuming one, maintaining a low profile, averse
to giving interviews. |
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Jeh,
as he prefers to be addressed, initially went
through training in The Bombay Dyeing &
Mfg Co Ltd, Mumbai, then rotated various positions
till last October when he became the Deputy
Managing Director of The Bombay Burmah Trading
Corporation which maintains four tea and coffee
plantations in Tamil Nadu. |
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In
this time he began to look at new strategic
investments for the company. One such financial
investment was a joint venture with The Port
Singapore Authority (PSA), another example is
GoAir, the no-frills airline. |
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"Connectivity",
"commoditise" and "grow"
are the Wadia scion's favourite words, as he
talks about "the People's Airline".
Connectivity is the reason why he launched GoAir. |
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Does
he think GoAir can successfully negotiate its
place in India's crowded skies? India, he says,
reeling off a succession of statistics, has
a huge advantage over, say, China. "If
you really study the market, you'll find there
is no such thing as `crowded'. Only a huge opportunity
waiting to be explored; a huge demand waiting
to be tapped. |
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"Bombay
Dyeing has paid dividends for the past 126 years;
the Burmah Trading Corp is the second listed
company on the Stock Exchange. The values and
principles that have been incorporated for years
in the Wadia Group — of trust and integrity
— will also be inculcated into the airline
business. I'm confident of GoAir's success.
I believe there's room for all of us. We have
functional airports in an industry whose growth
rate is about four per cent. There's room for
growth and expansion here as well." |
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GoaAir's
fares are 40 per cent lower than that of traditional
airlines and on an average 10 per cent higher
than air-conditioned first and second-class
railway fares. Bookings can be made six months
in advance. The fares will rise closer to the
departure date. |
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Elaborating
on GoAir's pricing and sales strategy and its
avowed goal of retaining its low-cost appeal,
he said, "We continually emphasise the
Book Early Mantra to obtain cheaper fares,"
says Jeh. |
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"I
am thinking of people in the metros who would
like to visit their aged parents and relatives;
people who may want to visit their hometowns
more often. One differential factor is the distribution
mode. Our distribution network has been carefully
researched, keeping in mind that our passengers
should not have to travel a very long distance
to purchase a GoAir ticket. We have also catered
for people who are not computer-savvy and do
not possess credit cards. These passengers will
be able to purchase tickets in cash directly
from GO-branded PCOs, travel agents, gas stations,
post offices and cell-phone outlets. Others
can dial our Customer Care Centre's toll number
or book online at www.GoAir.in We also have
cybercafes and have tied up with Tata Indicom
and InLott in this regard. With an aggressive
growth plan under way, we are in talks with
various distribution outlets to further enhance
our network." |
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Plans
for future: Outlining plans for fleet
and route expansion, Jeh said, "Our main
objective is to focus on delivering a quality
— consistent quality — assured and
time-efficient product and service at affordable
fares. We want to commoditise air travel in
India by delivering low-cost fares with quality
in price, efficiency and service. We want to
give our customers the best value for money
and make air travel affordable by all. It is
our dream to increase air connectivity in India,
and this is the first step in this direction.
Our theme is Experience The Difference." |
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Volunteer:
Not many know that his leisure hours
are occupied volunteering at the Deendayal Research
Institute (DRI) in Chitrakoot where, under the
leadership of his father Nusli's friend, Nanaji
Deshmukh, Jeh has adopted 2000 villages to make
them totally self-reliant.
Hygiene, education, entrepreneur training, and
agricultural development are just a few of the
areas looked at by DRI. |
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"Nanaji
envisions self reliance for 600,000 villages
in his life time. It is my dream to translate
Nanaji's vision of ameliorating the lives of
this rural population." Dream. That's another
of Jeh Wadia's favourite words. |
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| Does
Jeh Wadia believe in fate or destiny? "I
believe in miracles. This joyride will not be
a stand-alone item. There will be more treats
in store for the sick and needy. This joyride
will not be the last."
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