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What effect does haze have on the ability to see traffic or terrain features during flight ?

haze can create the illusion of being at a greater distance from the traffic or terrain than you actually are. The pilot who dose not recognize this may fly a lower approach.

Above that Haze will ofcourse limit you visibilty which means that pilot in comand will recognise A/C in shorter distance than he is used to.

On the the other hand, HAZ (pronounced haze) in Laser physics means Heat Affeced Zone which is the area that is thermaly affected when a LASER hits a metalic spacimen.