Fastjet still awaits clearance for Nairobi flights as results again improve

Fastjet still awaits clearance for Nairobi flights as results again improve

FastJet courts SA investors

March 13 2015 at 11:20am
By Mike Cohen Comment on this story
4189101969.jpg
SUPPLIED​
FastJet is seeking investors to finance a route expansion in eastern and southern Africa. File photo: SuppliedCape Town - FastJet PLC is approaching potential South African investors about buying stakes to finance a route expansion in the east and south of the continent and support its effort to become the first pan-African discount airline.

"We are an African company, even though we are listed in London," Chief Executive Officer Ed Winter said in an interview in Cape Town on Thursday. "It makes a lot of sense to have South African shareholders" for potentially "significant" investments.

FastJet, which has its corporate headquarters at London Gatwick airport, operates three leased short-haul Airbus Group NV A319 airliners from a base in the Tanzanian port city of Dar es Salaam. The Tanzania unit, which began operating in November 2012, had its first profitable trading month in December 2014. The carrier intends to set up operations in Kenya, Zambia, Zimbabwe, Uganda and South Africa in the next few years.

While FastJet's planes are almost fully utilised, it has scaled back efforts to secure as many as 10 more aircraft by December due to delays in securing licences, Winter said.

FastJet has been unchanged in London trading for about a week at 1.25 pence, valuing the carrier at 20.5 million pounds ($30.5 million). Even after rising this year, the stock is down 37 percent from 12 months ago.

"There is a lot of value in the foundation that we have built," Winter said. "The share price doesn't reflect that yet."

The current route network serves four towns in Tanzania and one city apiece in South Africa, Zambia, Zimbabwe and Uganda.

Zambia project

FastJet is "well on the way" to obtaining an air operator's permit in Zambia, after a delay stemming from presidential elections in January, Winter said. There's scope to operate domestic flights linking the capital, Lusaka, with the town of Ndola in the north and Livingstone in the south, as well services to South Africa, Malawi, Zimbabwe and Kenya.

FastJet has also applied for operating permits in Zimbabwe, and is looking to introduce flights linking the capital, Harare, with Johannesburg.
"Things take a bit longer than you expect," Winter said. "I'd like to make things more efficient here and move forward but it's the way it is. We are still absolutely confident that the market opportunity is here, the model is working and opportunity to expand is here."

While the carrier registered a business in Kenya in January 2013, it has made "little progress" in securing operating permits and hopes the snag will be resolved soon, Winter said. The carrier pulled out of Ghana and Angola in December, and has no immediate plans to reenter those markets.

"Angola is just an impossible place to do business," while in Ghana, the currency has dropped against the dollar this year, Ebola is present in nearby countries and the nation has "major infrastructure problems", Winter said.

Bloomberg

FastJet courts SA investors - Companies | IOL Business


 
Meanwhile

[h=1]QATAR Airways Files Proposed New Tanzania / Pakistan Service in S15[/h]by JL
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Update at 0530GMT 21FEB15

In the latest schedule update within the past 7-14 days, QATAR Airways has filed a number proposed schedules for potential new routes, including Tanzania and Pakistan. Note all information listed below is based on preliminary schedule filing in the GDS, therefore reservation is not open and further changes to planned operational launch date and schedule remains subject to change. Operational flight number listed below is used on temporary basis by the airline.
Doha – Kilimanjaro – Zanzibar – Doha Proposed schedule shows 5 weekly flights from 01JUL15
QR2951 DOH0735 – 1235JRO1600 – 1700ZNZ1800 – 2300DOH 320 x24
QR%2520Tanzania.jpg

Doha – Faisalabad Proposed schedule shows 3 weekly flights from 17JUL15
QR2958 DOH0110 – 0635LYP 320 135
QR2959 LYP0945 – 1115DOH 320 135
QR%2520LYP.jpg

Doha – Multan Proposed schedule shows 3 weekly flights from 02AUG15
QR2962 DOH0110 – 0625MUX 320 357
QR2963 MUX0935 – 1105DOH 320 357
Doha – Sialkot Proposed schedule shows 4 weekly flights from 16JUL15
QR2960 DOH0110 – 0650SKT 320 x135
QR2961 SKT0935 – 1115DOH 320 x135



Read more from 2015, QATAR Airways, [oneWorld]


QATAR Airways Files Proposed New Tanzania / Pakistan Service in S15 | Airline Route

MY TAKE
The person that told Ms Kandie that Tanzania tourism sector will suffer when she bans tour vans accessing JKIA has to be a very narrow minded individual as many airlines are flocking Tanzania's space.

[FONT=Verdana][COLOR=#333333][B][B][URL="https://www.jamiiforums.com/member.php?u=10258"]Kimweri[/URL][/B], [URL="https://www.jamiiforums.com/member.php?u=18171"]nomasana[/URL][/B],
MK254, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254,Kafrican,bagamoyo, Ngongo, AbTitchaz, mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham,Mpendwa1,kadoda11, Kafrican, DemiGod



[/FONT][/COLOR]
 
Mmezuia magari yetu sisi tumewapunguzia safari zenu za kuja Tanzania. Kutoka 42 hadi 14. Mkifanya kingine tutazuia maziwa yenu, pipi, mafuta. Tutamwacha Unilever tu nae tutamwambia atengeneze vitu Tanzania
 
Mmezuia magari yetu sisi tumewapunguzia safari zenu za kuja Tanzania. Kutoka 42 hadi 14. Mkifanya kingine tutazuia maziwa yenu, pipi, mafuta. Tutamwacha Unilever tu nae tutamwambia atengeneze vitu Tanzania

Safi, hamjaona sisi tukili lia kama watoto jinsi nyie mlilia tulipozuia magari yenu. Tuendelee kumwaga, mwaga mboga namwaga unga, tundelee hivyo bila malalamiko ya aina yoyote.
 
Safi, hamjaona sisi tukili lia kama watoto jinsi nyie mlilia tulipozuia magari yenu. Tuendelee kumwaga, mwaga mboga namwaga unga, tundelee hivyo bila malalamiko ya aina yoyote.

Shirika lenu litaifata ATCL miaka ijayo.
Mkiweka lingine tutaanza na Brookside, afu .......
 
Shirika lenu litaifata ATCL miaka ijayo.
Mkiweka lingine tutaanza na Brookside, afu .......

Kila tunachokifanya tunafanya kama tunajua hesabu zetu na Tanzania ziko vipi, hivyo hamna jipya. Biashara zetu huko kwenu huwa ni kuvumilia tu lakini hatupo na nyie kwa chochote.
 
Kila tunachokifanya tunafanya kama tunajua hesabu zetu na Tanzania ziko vipi, hivyo hamna jipya. Biashara zetu huko kwenu huwa ni kuvumilia tu lakini hatupo na nyie kwa chochote.

Diplomatic row looms as Kenya's access to Tanzanian airspace cut
BY FRANKLINE SUNDAY Updated Wednesday, March 18th 2015 at 00:00 GMT +3 Share this story:
stdqjwlenabszgls.jpg

A Kenya Airways plane at the Jomo Kenyatta International Airport. Tanzania has slapped restrictions on flights entering its airspace. [photo: file/standard]

A diplomatic row is looming between Kenya and Tanzania after the latter slapped restrictions on flights entering its airspace.

The Tanzania Civil Aviation Authority (TCAA) has cut the frequency of flights from Kenya by as much as 30 per cent, setting the stage for another round of diplomatic and trade disputes between the two East African countries.

Starting today, flights from Nairobi to Dar es Salaam have been reduced from 42 per week to 14, a decision that is bound to have a direct and adverse impact on tourism and trade between the two countries.


In a letter seen by The Standard, TCAA has further cancelled all previously scheduled flights by Kenya's national carrier, Kenya Airways, pending a revised flight schedule.

The decision follows a stalemate on the Bilateral Air Services Agreements (Basa), in which Tanzania blames Kenya for maintaining a hard stance despite eight years of negotiations.


"The United Republic of Tanzania regrets that the discussions could not come into consensus on the matter relating to principal place of business and effective regulatory control as a criterion for airline designation parallel to the majority ownership and effective control requirement," read the letter in part.


TCAA further said the matter has been an agenda for the past eight years, raised for the first time by the Tanzania government in 2007. Delegates from the two countries met again in Nairobi in February 2011, and in Indonesia in November 2014 and discussed the matter. But it has not been resolved to date, with Tanzania claiming to be the biggest loser.

"Having considered the gravity of the non-acceptance by Kenya of the proposed criterion by Tanzania and time taken, I am instructed to inform you that the Aeronautical Authorities of the United Republic of Tanzania wish to implement several actions before contemplating any future Basa review," read the letter.

"Total frequencies per week on Nairobi-Dar es Salaam route reduced to 14 per week from the current 42 per week. All previous approved Kenya Airways flights scheduled by TCAA were cancelled and hence the revised flight schedule.

TRADE TIFFS

TCAA has further restricted the entry and exit points to three: Kilimanjaro, Dar-es-Salaam and Zanzibar, with the type of equipment restricted to the Embraer 190 or Boeing 737-800. The Kenya government is yet to issue an official statement on the matter, with the Kenya Civil Aviation Authority (KCAA) stating that the Ministry of Transport is the body mandated to speak on bilateral negotiations.

"Any negotiations between governments are not going to be rushed but I would refer you to the Ministry of Transport for further comment," stated KCAA Communication Officer Mutia Mwandikwa. "However, under the East African Community spirit, the motive is to open up the regional airspace," he added.

The developments are the latest diplomatic and trade tiffs between Kenya and Tanzania. Last month, tour vans from Tanzania were denied access into the Jomo Kenyatta International Airport, setting the stage for frosty relations between tourism stakeholders from the two countries.

The move by Tanzania also comes barely three months after the presidents of Uganda, Kenya, Rwanda and South Sudan signed a pact on the management of the Northern Corridor Air Space bloc expected to reduce the cost of air travel in the region.


Read more at:
Standard Digital News : : Business - Diplomatic row looms as Kenya's access to Tanzanian airspace cut

Read more at:
Standard Digital News : : Business - Diplomatic row looms as Kenya's access to Tanzanian airspace cut

MY TAKE

They should ban completely KQ from flying to Tanzanian space! For those who do trade in Nairobi should try to find alternatives Dubai and J'burg are much better business hubs and accessibility is cheaper than going to Nairobi


Kimweri, nomasana,
MK254, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254,Kafrican,bagamoyo, Ngongo, AbTitchaz, mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham,Mpendwa1,kadoda11, Kafrican, DemiGod
 
Meanwhile in Uganda KQ did this to Museveni,

2CuT8mV.jpg
 
Diplomatic row looms as Kenya's access to Tanzanian airspace cut
BY FRANKLINE SUNDAY Updated Wednesday, March 18th 2015 at 00:00 GMT +3 Share this story:
stdqjwlenabszgls.jpg

A Kenya Airways plane at the Jomo Kenyatta International Airport. Tanzania has slapped restrictions on flights entering its airspace. [photo: file/standard]

A diplomatic row is looming between Kenya and Tanzania after the latter slapped restrictions on flights entering its airspace.

The Tanzania Civil Aviation Authority (TCAA) has cut the frequency of flights from Kenya by as much as 30 per cent, setting the stage for another round of diplomatic and trade disputes between the two East African countries.

Starting today, flights from Nairobi to Dar es Salaam have been reduced from 42 per week to 14, a decision that is bound to have a direct and adverse impact on tourism and trade between the two countries.


In a letter seen by The Standard, TCAA has further cancelled all previously scheduled flights by Kenya's national carrier, Kenya Airways, pending a revised flight schedule.

The decision follows a stalemate on the Bilateral Air Services Agreements (Basa), in which Tanzania blames Kenya for maintaining a hard stance despite eight years of negotiations.


"The United Republic of Tanzania regrets that the discussions could not come into consensus on the matter relating to principal place of business and effective regulatory control as a criterion for airline designation parallel to the majority ownership and effective control requirement," read the letter in part.


TCAA further said the matter has been an agenda for the past eight years, raised for the first time by the Tanzania government in 2007. Delegates from the two countries met again in Nairobi in February 2011, and in Indonesia in November 2014 and discussed the matter. But it has not been resolved to date, with Tanzania claiming to be the biggest loser.

"Having considered the gravity of the non-acceptance by Kenya of the proposed criterion by Tanzania and time taken, I am instructed to inform you that the Aeronautical Authorities of the United Republic of Tanzania wish to implement several actions before contemplating any future Basa review," read the letter.

"Total frequencies per week on Nairobi-Dar es Salaam route reduced to 14 per week from the current 42 per week. All previous approved Kenya Airways flights scheduled by TCAA were cancelled and hence the revised flight schedule.

TRADE TIFFS

TCAA has further restricted the entry and exit points to three: Kilimanjaro, Dar-es-Salaam and Zanzibar, with the type of equipment restricted to the Embraer 190 or Boeing 737-800. The Kenya government is yet to issue an official statement on the matter, with the Kenya Civil Aviation Authority (KCAA) stating that the Ministry of Transport is the body mandated to speak on bilateral negotiations.

"Any negotiations between governments are not going to be rushed but I would refer you to the Ministry of Transport for further comment," stated KCAA Communication Officer Mutia Mwandikwa. "However, under the East African Community spirit, the motive is to open up the regional airspace," he added.

The developments are the latest diplomatic and trade tiffs between Kenya and Tanzania. Last month, tour vans from Tanzania were denied access into the Jomo Kenyatta International Airport, setting the stage for frosty relations between tourism stakeholders from the two countries.

The move by Tanzania also comes barely three months after the presidents of Uganda, Kenya, Rwanda and South Sudan signed a pact on the management of the Northern Corridor Air Space bloc expected to reduce the cost of air travel in the region.


Read more at:
Standard Digital News : : Business - Diplomatic row looms as Kenya's access to Tanzanian airspace cut

Read more at:
Standard Digital News : : Business - Diplomatic row looms as Kenya's access to Tanzanian airspace cut

MY TAKE

They should ban completely KQ from flying to Tanzanian space! For those who do trade in Nairobi should try to find alternatives Dubai and J'burg are much better business hubs and accessibility is cheaper than going to Nairobi


[URL="https://www.jamiiforums.com/member.php?u=10258"]Kimweri[/URL], nomasana,
MK254, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254,Kafrican,bagamoyo, Ngongo, AbTitchaz, mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham,Mpendwa1,kadoda11, Kafrican, DemiGod

Told you a few pages ago if it were to come to this, precision will be left to hold the forte. Precision will now increase frequencies and prices as it has a monopoly.
 
Told you a few pages ago if it were to come to this, precision will be left to hold the forte. Precision will now increase frequencies and prices as it has a monopoly.
but now KQ will get 40% of each ticket paid and from 42 frequencies to 14 per week! so who is stupid overhere? :A S-baby:
 
but now KQ will get 40% of each ticket paid and from 42 frequencies to 14 per week! so who is stupid overhere? :A S-baby:

Fares wil go up, it will be like NBO-EBB, precision will take the remaining 28 and from my point of view, 40% is better than nothing if fastjet dominates the route. Fastjet and Tanzanian Government have made a move, if I saw this move a few months ago it means guys at kq saw it too. The way I see it is both parties have decided to go into the trenches, a war of attrition if you may, Kq and fastjet need to make profits fast, and for fastjet the only way a profit can be made is if they get JKIA as a base. In wars of attrition the smaller guy normally gives in first
 
Fares wil go up, it will be like NBO-EBB, precision will take the remaining 28 and from my point of view, 40% is better than nothing if fastjet dominates the route. Fastjet and Tanzanian Government have made a move, if I saw this move a few months ago it means guys at kq saw it too. The way I see it is both parties have decided to go into the trenches, a war of attrition if you may, Kq and fastjet need to make profits fast, and for fastjet the only way a profit can be made is if they get JKIA as a base. In wars of attrition the smaller guy normally gives in first
so you know more than us? KQ+PW have been allocated 14 routes and FYI there are plans underway to have KQ stake in PW diluted and this happens to an airline that has made a loss of over US$ 200 mln
 
so you know more than us? KQ+PW have been allocated 14 routes and FYI there are plans underway to have KQ stake in PW diluted and this happens to an airline that has made a loss of over US$ 200 mln

I'm talking long term here, if fast jet was able to lobby, precision too will lobby.
 
I'm talking long term here, if fast jet was able to lobby, precision too will lobby.
owky but snatching 28 routes from KQ that was getting 100% fare! With PW KQ will get only 40% of the fare and the rest will go to Tanzanians! how about that? :lol::rockon:
 
owky but snatching 28 routes from KQ that was getting 100% fare! With PW KQ will get only 40% of the fare and the rest will go to Tanzanians! how about that? :lol::rockon:

if kq wants to kill fast jet, thats the bitter pill it has to take, how long fast jet can last while making losses is the key determinant here. Its moves and counter moves, I have to give it to TCAA and fast jet, that move was bold

CAPA said:
fastjet Tanzania also has been highly unprofitable

While the outlook is brighter without the burden of the fly540 operations, the fastjet group still has to turn around its only remaining airline subsidiary, fastjet Tanzania. The LCC has accumulated operating losses of over USD40 million since launching services in late Nov-2012, including a USD22 million loss in 2013 and a USD14 million loss in 1H2014. (A figure for its first month of operation in 2012 is not available and fastjet has not yet provided any figures for 2H2014.)
The losses are clearly unsustainable given the airline only generated USD47 million in revenues through its first 19 months of operations. This includes USD2 million in Dec-2012, USD26 million in 2013 and USD19 million in 1H2014.
The group is confident fastjet Tanzania can become profitable in 2015, boosted by lower fuel prices as it does not have any fuel hedges. But given the extent of the losses so far – including an operating margin of about negative 74% in 1H2014 – it will take a lot more than lower fuel costs to turn the LCC around.

fastjet needs multiple bases to be viable

Scale is clearly an issue. fastjet Tanzania is about to carry its one millionth passenger – a milestone most LCCs meet in a much quicker timeframe than the 25 months taken by fastjet.
The Tanzanian market is relatively small and is not expected by fastjet to support an LCC operation of more than seven aircraft over the medium to long term. Even with its current three aircraft schedule fastjet is already the largest airline in the Tanzanian market with an approximately 20% share of total seat capacity. fastjet’s model has always envisioned achieving economies of scale by establishing a group of airlines. This would unlock synergies through joint purchasing, sharing a website and connecting the dots by serving common destinations.
But fastjet has so far faced repeated delays in launching new affiliates, making it impossible to achieve the scale needed to be profitable. Initially the group focused on launching affiliates in South Africa, Kenya and Nigeria. MoUs with joint venture partners in each of these markets were initially signed in 2012 and early 2013. The group’s initial fleet plan envisioned 13 aircraft spread across multiple bases by the end of 2013.

http://centreforaviation.com/analys...-but-profitability-remains-challenging-203064
 
if kq wants to kill fast jet, thats the bitter pill it has to take, how long fast jet can last while making losses is the key determinant here. Its moves and counter moves, I have to give it to TCAA and fast jet, that move was bold
since December 2014 Fastjet is making profit! so i do not know what you mean with KQ killing Fastjet! FYI Fastjet is pushing harder to drive KQ out of the market! They just introduce Entebbe-KIA route and at KIA there will be free shuttle buses to ferry passengers to Nairobi! Guess what since the ticket can go as cheaper as $50, it will be more convenient for Ugandan business man board a flight to KIA and take a shuttle bus for 4 hours unlike paying $500 for Entebbe-JKIA
 
since December 2014 Fastjet is making profit! so i do not know what you mean with KQ killing Fastjet! FYI Fastjet is pushing harder to drive KQ out of the market! They just introduce Entebbe-KIA route and at KIA there will be free shuttle buses to ferry passengers to Nairobi! Guess what since the ticket can go as cheaper as $50, it will be more convenient for Ugandan business man board a flight to KIA and take a shuttle bus for 4 hours unlike paying $500 for Entebbe-JKIA

We seem to agree on one thing, its kill or be killed, if that EBB-KIA strategy works even for a single month, jambo jet will be deployed to EBB to lap up those passengers
 
Tanzania hits Kenya where it hurts

nzania+hits+photo.gif







IN SUMMARY

Kenya Airways, which dominated the Dar-Nairobi route, is now allowed only 14 flights between the two countries each week, down from 42


Dar es Salaam. Kenya Airways stands to lose big time after the Tanzania Civil Aviation Authority's decision to cut the frequency of its flights from Nairobi to Dar es Salaam, Zanzibar and Kilimanjaro by over 60 per cent.


In what appears to be payback after Kenya banned Tanzanian vehicles from Jomo Kenyatta International Airport, the move comes in the wake of a deadlock on the Bilateral Air Services Agreements (Basa) between the two countries. Flights from Kenya to Tanzania are now down to 14 a week from 42, a 67 per cent reduction. The move took effect on Tuesday.

TCAA has written to the government of Kenya informing it of the decision, which took effect on Tuesday this week. The move is likely to affect tourism and trade between the two countries.


According to the TCAA letter, Kenya has maintained a hardline stance on resolving issues surrounding the Basa. The acting TCAA Director General, Mr Charles Chacha, told The Citizen yesterday that the two countries had gone for years without an aviation agreement. "It is quite clear that civil aviation is administered by laws and principles," Mr Chacha said. "Each country is required to comply with the laws in a given country." The Bilateral Air Services Agreements (Basa) has been stuck in a stalemate between the two countries.


There are issues to be considered in each agreement, Mr Chacha said, including the number and kind of flights, alongside identification of airport for international flights.


In Tanzania, most of international flights use Mwanza, Zanzibar, Dar es Salaam and Kilimanjaro airports. "When you sign an agreement," Mr Chacha added, "you have an obligation to protect and guarantee the safety of all planes in your space."


The TCAA boss said the measures spelled out in the letter will remain in place pending Kenya's response.


The matter has seemingly been a burning issue for years and representatives of both countries have met to discuss it--with no success.


According to Mr Chacha, there have been meetings to sort out the matter for almost eight years, having started in 2007. There were further meetings in Nairobi in 2011 and in Indonesia in 2014. "We have considered the gravity of the non-acceptance by Kenya of the proposed criterion by Tanzania and the time taken and implementation of the actions seemed to be the option," he said. "The United Republic of Tanzania regrets that the discussions could not come into consensus on the matter relating to principal place of business and effective regulatory control as a criterion for airline designation parallel to the majority ownership and effective control requirement," reads part of the letter.


Asked about the economic outcome, the TCAA boss responded that there were advantages and disadvantages to everything.


Kenya Airways is the leading foreign airline in terms of flights operated per week between Kenya and Tanzania and it will now have to reschedule all flights to comply with the new schedule.


The Kenya Airways country manager in Tanzania, Ms Lucy Malu, told The Citizen that she and her team were doing everything they could to contain passengers within the given flights. "We have been affected by the TCAA's decision but we have managed to fix our schedules and I can say things are in order," she added.


TCAA has further restricted the entry and exit points to three: Kilimanjaro, Dar es Salaam and Zanzibar, with the equipment restricted to the Embraer 190 or Boeing 737-800.


The Kenyan government had yet to issue an official statement on the matter yesterday, with the Kenya Civil Aviation Authority (KCAA) stating that only the Ministry of Transport is mandated to speak on bilateral negotiations. "Any negotiations between governments are not going to be rushed and I would refer you to the Ministry of Transport for further comment," said KCAA Communication Officer Mutia Mwandikwa. "In the East African Community spirit, though, the idea is to open up the regional airspace."


Last month, tour vans from Tanzania were denied access to Jomo Kenyatta International Airport, setting the stage for frosty relations between tourism stakeholders in the two countries. Tanzania's move comes barely three months after the presidents of Uganda, Kenya, Rwanda and South Sudan signed a pact on the management of the Northern Corridor Air Space bloc, which is expected to reduce the cost of air travel in the region.




http://www.thecitizen.co.tz/News/national/-/1840392/2658470/-/view/printVersion/-/yu86kx/-/index.html

[FONT=Verdana][COLOR=#333333][FONT=Georgia][COLOR=#333333][FONT=Verdana][COLOR=#333333][B][B][URL="https://www.jamiiforums.com/member.php?u=10258"]Kimweri[/URL][/B], [URL="https://www.jamiiforums.com/member.php?u=18171"]nomasana[/URL][/B],
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