Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 79

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 79
---
etration compared to countries with similar economies (as measured by income per capita) and geographies. Specifically, according to
data from the Unidad Administrativa Especial de Aeronáutica Civil (UAEAC), Colombia’s domestic flights per
capita was 0.6 in 2023, compared to 0.8 in Chile during the same year, according to data from the Junta de Aeronáutica Civil

  53  

  Table of Contents  

The Mexican low-cost airline industry competes with ground
transportation alternatives, primarily long-distance bus companies. Given the limited passenger rail services in Mexico, travel by bus
has traditionally been the predominant low-cost option for long-distance travel for a significant portion of the Mexican population. In
2023, bus companies transported over 3.1 billion passengers in Mexico in the domestic market, of which approximately 83.7 million were
executive and luxury passenger segments, as measured in segments which include both long-distance (five hours or greater) and short-distance
travel, according to the SICT. We believe that an increased shift in demand from bus to air travel in Mexico presents a significant opportunity
as the macroeconomic environment improves and rising demographics take shape across the country. Furthermore, we believe that long-distance
bus passengers will continue to shift to airplane travel when certain promotional fares are priced lower than bus fares for similar routes.

In the past the Mexican federal government has made a substantial
investment in developing Mexico’s airport infrastructure. In 1998, the Mexican federal government created a program to open Mexico’s
airports to private investments. Three private airport operators ( Grupo Aeroportuario del Pacífico, S. A. B. de C. V., Grupo
Aeroportuario del Centro Norte, S. A. B. de C. V. and Aeropuertos del Sureste de México, S. A. B. de C. V. ) were incorporated
and granted 50-year concessions to operate airports in Mexico. In the first stage of the privatization process, the Mexican federal government
sold a minority stake to strategic partners. The privatization process culminated in mid-2006, when the Mexican federal government sold
the balance of its holdings to the public via initial public offerings.

The Mexican federal
government still manages and operates the Mexico City International Airport, which it considers strategic, as well as other minor airports
in the country. We believe that strong foundational infrastructure, and continued investment and development