Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 126

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 126
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. S. $3.6 million, U. S. $(34.1)
million and U. S. $13.7 million, respectively.

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  Table of Contents  

Maintenance
Expenses. We are required to conduct varying levels of aircraft and engine maintenance, which involve significantly different
labor and materials inputs. Maintenance requirements depend on the age and type of aircraft and the route network over which they
operate (flight duration and frequency of flights). Fleet maintenance requirements may involve short cycle maintenance checks, for example,
daily checks, weekly checks, component checks, monthly checks, annual airframe checks and periodic major maintenance and engine checks.
Aircraft maintenance and repair costs for routine and non-routine maintenance are divided into three general categories:

  Routine line maintenance requirements consist of scheduled maintenance checks on our aircraft, including pre-flight, daily, weekly            

  Certain maintenance activities, due to limited internal capabilities or capacity, are sub-contracted to qualified maintenance, repair  
  and overhaul organizations. Routine maintenance also includes scheduled tasks that can take from six to 12 days to accomplish and are  
  required every 24 or 36 months, such as 24-month checks and C checks. All routine maintenance costs are expensed as incurred.          
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  Heavy or major maintenance to the airframe (including structural checks) consists                                                             

  Engine services are performed pursuant to an engine flight hour agreement that guarantees a cost performance restoration shop visit,          

Due to the young age of our fleet, 6.4 years on average as
of December 31, 2024, maintenance expense in 2022, 2023, and 2024, remained relatively low. For the years ended December 31, 2022, 2023,
and 2024, we capitalized major maintenance events as part of leasehold improvements to the flight equipment by the amount of U. S. $138.8
million, U. S. $139.8 million, and U. S. $129.4 million, respectively. For the years ended December 31, 2022, 2023, and 2024, the amortization
of these deferred major maintenance expenses was U. S. $83.1 million, U. S. $114.9 million, and U. S. $150.6 million, respectively. The
amortization of deferred maintenance expenses is included