Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 35

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 35
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 regulatory
authorities and assigns an IASA rating to each country, based on the country’s compliance with ICAO standards for safety oversight
of civil aviation. Under the IASA rating system, Category 1 means the FAA has determined the country meets the ICAO standards, and Category
2 means the FAA has determined the country does not meet those standards. When a country is ranked Category 2, its airlines cannot add
new service or routes to the United States or engage in code sharing arrangements involving the display of U. S. carrier designator codes.
In February 2021, Costa Rica’s IASA rating was upgraded to Category 1 from Category 2, 21 months after it was downgraded due to
alleged deficiencies in the Costa Rican air safety standards. In May 2021, Mexico’s IASA rating was downgraded from Category 1 to
Category 2, and was upgraded back to Category 1 in September 2023. During the period of the downgrade, we were prevented from adding new
services or routes to the United States or expanding our fleet of aircraft authorized to serve the United States. We cannot assure you
that the governments of Mexico, Costa Rica and El Salvador, and the AFAC, the General Directorate of Civil Aviation (Dirección
General de Aviación Civil) of Costa Rica and the Civil Aviation Authority (Autoridad de Aviación Civil) of El
Salvador in particular, or the aviation authorities in the Central and South American countries in which we operate, will continue to
meet the ICAO standards. If the IASA ratings of Mexico or the other Central and South American countries in which we operate were to be
downgraded in the future, it could restrict our ability to maintain or increase service to the United States (including but not limited
to expanding the number of aircraft we operate to and from the United States), which would in turn adversely affect our business, results
of operations and financial condition.

We rely heavily on technology and automated systems to operate our business
and any significant failure of or compromise to these technologies or systems their operators could materially harm our business, results
of operations, or financial condition.

We are highly dependent on technology and automated systems
to operate our business and achieve low operating costs. These technologies and systems include our computerized airline reservation system,
domain names system, revenue management system, flight operations system, enterprise resource planning system, human resources systems,
maintenance systems, telecommunications, network, infrastructure, website,