* Investors, company don't agree on share price
* Questions about new Russian jets
(Adds background, quotes from analyst)
MEXICO CITY, June 30 Low-cost and airline
Interjet, Mexico's second-largest carrier, made a surprise move
to call off its planned listing on the Mexican stock exchange
on Thursday, citing unfavorable market conditions.
On Wednesday, Interjet and its parent company ABC
Aerolineas announced the listing in a newspaper notice but
later pulled back the statement.
Interjet said in a statement it decided not to go ahead
with its planned listing "at the moment" due to the
"complicated situation" on financial markets.
One market source said investors were not willing to pay
the price Interjet was hoping for after the company estimated
its stock value at around 23 pesos per share.
"They didn't like the pricing and they decided not to go
for it," the source said, asking not to be named.
Interjet, which launched in 2005 as a low-cost carrier and
since then has gained more than 20 percent of the domestic
market, was hoping to use the money raised from the IPO to help
pay for new planes and expand its business in Mexico.
But some analysts were wary of a $650 million deal it
signed with SuperJet International this year to acquire 15
Russian-made Sukhoi SuperJet 100 planes.
Interjet currently has a fleet of 22 planes made by EADS
EAD.PA unit Airbus and could face complications operating two
different fleets, airline analyst at Citigroup Stephen Trent
"They have switching costs now ... They need to pay for two
sets of inventories to sets of suppliers," he said. "That's a
tough conversation to have with an investor."
Interjet's public offering would have been the second
airline listing in Mexico this year after market leader
AeroMexico (AEROMEX.MX) made its market debut in April, raising
$330 million for 18 percent of its capital. [ID:nN1E75S0DB]
On Thursday AeroMexico's stock was trading at 26.7 pesos
Mexico's airline industry slumped during the economic
downturn and the 2009 outbreak of swine flu that cut passenger
But both AeroMexico and Interjet are now benefiting from a
pick-up in ticket sales as the economy improves, as well as
from less competition after one of the country's largest
carriers, Mexicana, was pushed to the brink of bankruptcy and
stopped flying in August 2010.
(Reporting by Veronica Gomez Sparrowe and Mica Rosenberg,
editing by Gerald E. McCormick)