Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 18

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 18
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 to us.

  18  

  Table of Contents  

Compliance with airline industry regulations involves significant
costs and regulations enacted in Mexico, the United States, Central America and South America as well as the applicable international
treaties may increase our costs significantly in the future.

Airlines are subject to extensive regulatory and legal compliance
requirements, both domestically and internationally, that involve significant costs. Compliance with such extensive regulatory and legal
compliance requirements has required significant expenditures including, among other things, collision avoidance systems, airborne wind
shear avoidance systems, noise abatement and other environmental mitigation, and increased inspections and maintenance procedures to be
conducted on older aircraft. We expect to continue to incur expenses in connection with complying with government regulations. Additional
laws, regulations, taxes and airport rates and charges have been proposed from time to time that could significantly increase the cost
of airline operations or reduce the demand for air travel. If adopted, these measures could have the effect of raising ticket prices,
reducing revenue and increasing costs.

The DOT also regularly issues and amends aviation consumer protection and disability
non-discrimination rules that address, among other things, fare advertising, fees for optional services, flight cancellations and delays
(including lengthy tarmac delays at U. S. airports), responses to customer complaints, oversales and “bumped” passengers, interactions
with passengers during the reservations process, at the airport and on board the aircraft, airlines’ adoption of and adherence to
customer service plans, and the handling of baggage and assistive devices. Failure to remain in full compliance with such rules may subject
us to fines or other enforcement action, which could have a material effect on our business, results of operations and financial condition.
Additionally, the U. S. Congress passed a new law addressing airline refunds in 2024, and the DOT recently promulgated new rules that address
airline refunds and transparency of airline ancillary service fees. Among many other requirements, the new airline refund rule requires
airlines to (i) provide prompt and automatic refunds of airfares to consumers for canceled or significantly delayed or changed flights
(if the customer does not fly on the significantly delayed or changed flight and does not accept the airline’s offer of alternate
transportation or travel credits, vouchers or other compensation in lieu of a refund), (ii) provide travel vouchers or credits (valid
for at least five years from date of issuance) to certain passengers who are unable or advised not to travel as scheduled because of a