Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 58

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 58
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 comply with the payment terms thereunder. See Item 5: “ Operating and Financial
Review and Prospects - Liquidity and Capital Resources - Loan Agreements” and Item 8: “ Financial Information - Consolidated
Statements and Other Financial Information - Dividend Policy.”

Minority shareholders may be less able to enforce their rights against us,
our directors, or our controlling shareholders in Mexico.

Under Mexican law, the protections afforded to minority shareholders
are different from those afforded to minority shareholders in the United States. For example, because Mexican laws concerning fiduciary
duties of directors ( i. e., the duty of care and the duty of loyalty, the only duties recognized under Mexican law) have been in
existence for a relatively short period of time and the laws concerning such duties are not as developed as the laws in the United States,
it is more difficult for minority shareholders to bring an action for breach of fiduciary duties in Mexico as compared to the United States.
Also, such actions may not be initiated as a direct action, but as a shareholder derivative suit (that is for the benefit of our company
and not the initiating shareholder). The grounds for shareholder derivative actions under Mexican law are limited. Even though applicable
law has been modified to permit shareholder derivative actions, and procedures for class action lawsuits have been adopted in Mexico,
there is very limited precedent with regards to such class action lawsuits and how procedures for such suits are followed in Mexico. Therefore,
it will be much more difficult for our minority shareholders to enforce their rights against us, our directors, or our controlling shareholders
than it would be for minority shareholders of a U. S. company.

Mexico has different corporate disclosure and accounting standards than
those in the United States and other countries.

A principal objective of the securities laws of the United
States, Mexico and other countries is to promote full and fair disclosure of all material corporate information, including accounting
information. However, there may be different or less publicly available information about issuers of securities in Mexico than is regularly
made available by public companies in countries with highly developed capital markets, including the United States.

Our interest
rate expense for any particular period will fluctuate based on SOFR and TIIE.

In November 2020, the ICE Benchmark Administration (“ IBA”),
the FCA-regulated and authorized administrator of LIBOR, announced that starting 2022, LIBOR will no longer be used to issue new loans,
and the last rates were published on June 30, 2023.