Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 1

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 1
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 the current political situation or any future developments in Mexico will not have a material
adverse effect on our business, results of operations, financial condition, or prospects.

   9  

  Table of Contents  

In addition, the Mexican federal government has exercised,
and continues to exercise, significant influence over the Mexican economy. In particular, Mexican governmental actions and policies concerning
air transportation and similar services could have a significant impact on us.

The New Mexicana de Aviación was created on June 15,
2023, as a state-owned company and started operations on December 26, 2023, further increasing our competition. On February 2, 2023, the
Mexican federal government published a decree which was amended on July 7, 2023, ordering the termination of domestic and international
air cargo transport operations, both regularly scheduled and unscheduled flights, at the Mexico City International Airport.

Furthermore, in September 2022, the AFAC issued a resolution
that reduced operations at the Mexico City International Airport from 61 to 52 flights per hour. Subsequently, on August 31, 2023, AFAC
issued a resolution that further reduced the number of flights in the Mexico City International Airport to a maximum of 43 flights per
hour. In response to this reduction, which took effect on January 8, 2024, we reduced capacity at the Mexico City International Airport,
initially redeploying four aircraft lines to other domestic airports, with a total of six aircraft redeployed by the end of 2024.

On February 5, 2024, former President Andrés Manuel
López Obrador submitted a package of 18 constitutional amendments and two legal reform initiatives to the Chamber of Deputies.
These amendments and initiatives aim to, among other things, modify the functioning of the Judicial, Legislative and Executive branches
and the electoral system; eliminate various autonomous constitutional bodies such as the Federal Economic Competition Commission, the
National Institute for Transparency, Access to Information, and Personal Data Protection, and the Federal Telecommunications Institute
and regulatory organizations, as well as simplify the structure of the Federal Public Administration; modify the power sector; establish
constitutional prohibitions on various matters such as fracking, open-pit mining, the use of vaping systems and fentanyl; and elevate
various social programs launched during his administration to constitutional rank, as well as create a supplementary pension fund.

On September 15, 2024, the Decree amending, adding and eliminating