Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 11

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 11
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 obligations set forth in the concession to be renewed;  

  have requested the renewal one year before the expiration of the concession term;  

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  have made an improvement in the quality of the services during the term of the concession; and  

  have accepted the new conditions established by the SICT according to the Mexican Aviation Law ( Ley de Aviación Civil).  

Failure to renew our Concession would have a material adverse
effect on our business, results of operations, financial condition and prospects and would prevent us from continuing to conduct our business.

In addition, we are required under the terms of our Concession
to comply with certain ongoing obligations. Failure to comply with these obligations could result in penalties against us. The Mexican
government has the right to revoke our Concession and the permits we currently hold for various reasons, including:

  service interruptions;  

  failure to comply with the terms of our Concession;  

  if we assign or transfer rights under our Concession or permits;  

  if we fail to maintain insurance required under applicable law;  

  if we charge fares different from those registered with the SICT;  

  if we violate statutory safety conditions;  

  if we fail to pay statutory indemnification; or  

  if we fail to pay to the Mexican government the required compensation.  

If our Concession or permits are revoked, we will be unable
to operate our business as it is currently operated and be precluded from obtaining a new concession or permit for five years from the
date of revocation. For more information on the potential causes for revocation of our Concession and permits, see Item 4: “ Information
of the Company - Regulation.”

Under Mexican law, our assets could be taken or seized by the
Mexican government under certain circumstances.

Pursuant
to Mexican law and our Concession, the Mexican federal government may take or seize our assets, temporarily or permanently, including
our aircraft, in the event of a natural disaster, war, serious changes to public order or in the event of imminent danger to national
security, internal peace or the national economy. The Mexican federal government, in all cases, except in the event of international war,
must indemnify us by paying the respective losses and damages at market value. In these circumstances, we would not be able to continue
with our normal operations. Applicable law is unclear as to how indemnification is determined and the timing of payment thereof. Any seizure
of our assets is likely