Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 29

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 29
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 to modify our aircraft acquisition plans or to incur
higher than anticipated financing costs, which would have an adverse impact on the execution of our growth strategy and business.

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Furthermore, upon the adoption of the Cape Town Treaty, an
international treaty intended to standardize transactions for movable property such as aircraft and aircraft engines, Mexico selected
the Alternative B insolvency provision, which gives more discretion to debtors and local courts to determine if and when defaults must
be cured, or the aircraft returned to its owner or creditor. Mexico’s selection of this insolvency provision may limit our access
to, or increase our costs of, financing in the event we elect to own a portion of our fleet. Uncertainty regarding the rights of creditors
in a Mexican bankruptcy proceeding and the factors discussed above may inhibit our ability to lease or acquire new aircraft on attractive
terms or at all, which may have a material adverse impact on our business, financial condition and results of operations. In addition,
if we are unable to obtain the financing necessary to acquire an aircraft for which we have entered into a binding purchase agreement
and fail to cancel the order or delay delivery of the aircraft, we would be in default under the related purchase agreement. Potential
liability for damages in the event of such a default could have a material adverse impact on our financial condition and results of operations.

Our limited lines of credit and borrowing facilities make us
highly dependent upon our operating cash flows.

We have limited lines of credit and borrowing facilities and
rely primarily on operating cash flows to provide working capital. Unless we secure additional lines of credit, borrowing facilities or
equity financing, we will be dependent upon our operating cash flows to fund our operations and to make scheduled payments on our debt
and other fixed obligations. If we fail to generate sufficient funds from our operations to meet these cash requirements or are unable
to secure additional lines of credit, other borrowing facilities or equity financing, we could default on our debt and other fixed obligations.
Our inability to meet our obligations as they become due would materially adversely affect our ability to grow and seriously harm our
business, results of operations and financial condition.

We are highly dependent on the Mexico City, Tijuana, Guadalajara and Cancun
airports for a large portion of our business.

Our business is heavily dependent on our routes to and from
the Mexico City, Tijuana, Guadalajara and Cancun airports. Routes through these cities make up a large portion of