Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 33

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 33
---
 liability or revenue and consequential business losses
arising from mechanical breakdown. To the extent that uninsured risks materialize, we could be materially and adversely affected. There
can also be no assurance that our insurance coverage will cover actual losses incurred. To the extent that actual losses incurred by us
exceed the amount insured, we may have to bear substantial losses which could have a material adverse effect on our financial condition
and results of operations.

A failure to comply with covenants contained in our aircraft or engine lease
agreements, or the occurrence of an event of default thereunder, could have a negative impact on us and our financial condition and results
of operations.

We have entered into aircraft and engine operating lease agreements,
sale and leaseback arrangements and engine finance leases with various lessors. These agreements contain certain events of default and
also require us to comply with certain covenants, including covenants triggered by a change of control, during the term of each agreement.
The lease agreements generally provide for events of default if:

  we fail to obtain or maintain the insurance required;  

  we breach any covenant or representation and warranty and do not cure it within the agreed time periods;  

  we do not have unencumbered control or possession of the aircraft or engines;  

  we discontinue (temporarily or otherwise) business or sell or otherwise dispose of all or substantially all of our assets;  

  we no longer possess the licenses, certificates and permits required for the conduct of our business as a certificated air carrier;  

  Volaris Opco experiences a change of control;  
 ─────────────────────────────────────────────────

  we fail to pay when due any airport or navigation charges or any landing fees assessed with respect to the aircraft or any aircraft      
  operated by us which, if unpaid, may give rise to any lien, right of detention, right of sale or other security interest in relation to  
  the aircraft or parts thereof;                                                                                                           
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  in case of certain insolvency events;  

  if a material adverse change occurs in our financial condition which, in lessor’s reasonable opinion, would materially and adversely  

  if we fail to comply with sanctions and export control laws.  

Failure to comply with covenants could result in a default
under the relevant agreement, and ultimately in a re-possession of the relevant aircraft or engine. Certain of these agreements also contain