Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 100

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 100
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 the airline industry are fare pricing, total price (including ancillary services), flight schedules, aircraft type,
passenger amenities, number of routes served from a city, customer service, safety record and reputation, code sharing relationships,
and frequent flier programs and redemption opportunities. Our current and potential competitors include traditional legacy airlines, low-cost
carriers, regional airlines and new entrant airlines. Some of our current or future competitors may have greater liquidity, access to
capital and serve more routes than we do.

Our main competitive advantages are our low base fares and
our focus on VFR travelers, leisure travelers and cost-conscious business travelers. These low base fares are facilitated by our low CASM,
which is the lowest among the other Latin American publicly traded airlines. In 2024, our CASM was U. S. $8.03 cents, compared to an average
non-stage length adjusted CASM of U. S. $10.29 cents for the other Latin American publicly traded airlines, including Azul, Copa, and LATAM.
We also have lower costs than our U. S.-based publicly traded target market competitors, including Alaska, American, Delta, JetBlue, Southwest,
Frontier, Spirit, Allegiant and United, which had an average non-stage-length adjusted CASM of U. S. $14.61 cents in 2024.

Our main competitors in Mexico are Grupo Aeroméxico
and Viva. Internationally, we compete with Grupo Aeroméxico, Viva and many U. S.-based carriers, including Alaska, American, Delta
and United. In the Mexico - Central America market, our main competitors are Grupo Aeroméxico and Avianca, while in the Central
America - U. S. market our main competitors are Avianca and Delta. In the Mexico - South America market our main competitors are Grupo
Aeroméxico, Viva and LATAM.

In 2024, the two Mexican ultra low-cost carriers, Volaris
and Viva, held 71.3% of the domestic market based on passenger flight segments. Volaris had 33.3% of the domestic market, according to
the AFAC.

As of December 31, 2024, the number of commercial aircraft
in service in Mexico increased to 389, as compared to 369 as of December 31, 2023, according to AFAC. This 5% increase was comprised mainly
of narrow body aircraft,