Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 132

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 132
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 Units (“ RSUs”), which has been classified as an equity-settled share-based
payment. The cost of the equity-settled share purchase plan is measured at grant date, considering the terms and conditions on which the
share options were granted. The equity-settled compensation cost is recognized in the consolidated statement of operations under the caption
of salaries and benefits, over the required service period.

- SARs plan (cash settled)

We granted SARs to key executives, which entitle them to a
cash payment after a service period.

The amount of the cash payment is determined based on the
increase in the share price of the Company between the grant date and the time of exercise. The liability for the SARs is measured, initially
and at the end of each reporting period until settled, at the fair value of the SARs, considering the terms and conditions on which the
SARs were granted. The compensation cost is recognized in the consolidated statement of operations under the caption of salaries and benefits,
over the required service period.

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The cost of the SARs plan is measured initially at fair value
at the grant date. This fair value is expensed over the period until the vesting date with recognition of a corresponding liability. Similar
to the equity settled awards described above, the valuation of cash settled award also requires using similar inputs, as appropriate.

Management incentive plan (“ MIP”)

On February 19, 2016, the Board of Directors authorized an
extension to the MIP for certain key executives, this plan was named MIP II. In accordance with this plan, we granted SARs to key executives,
which entitle them to a cash payment after a service period. The amount of the cash payment is determined based on the increase in the
share price of the Company between the grant date and the time of exercise. The liability for the SARs is measured initially and at the
end of each reporting period until settled at the fair value of the SARs, considering the terms and conditions on which the SARs were
granted. The compensation cost is recognized in the consolidated statement of operations under the caption of salaries and benefits,
over the required service period.

Board of Directors Incentive Plan (BoDIP)

Certain members of the Board of Directors receive additional
benefits through a share-based plan, which has been classified as an equity-settled share-based payment and therefore accounted under
IFRS 2 “ Share-based payment”.

In