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Interjet may finally go public in 2014 as it works to solidify its stance in the Mexican market

Analysis

Mexico's Interjet begins 2014 with hints that it may finally undertake an on-again, off-again initial public offering as hopes are high that Mexico's economy will improve after a lacklustre performance during 2013.

Near the end of 2013 Mexico's publicly traded carriers Aeromexico and Volaris were battling weak yields, trading in pricing traction to maintain load factors as conditions in the Mexican domestic market were challenging. As Mexico's second largest carrier in terms of seats on offer in the country's domestic market, privately-held Interjet also likely experienced some yield pressure during 2013.

Interjet continues its growth in 2014 as it accepts more deliveries of the 93-seat Sukoi Superjet 100 narrowbody jets that should aid the carrier in penetrating smaller markets and perhaps right-sizing capacity during less busier times on trunk routes. At the same time the carrier is considering building Guadalajara into a hub, following the launch of new international flights from Guadalajara to San Antonio in Dec-2013.

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