Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 68

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 68
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 their maintenance records and our safety procedures. Based on such inspections,
the AFAC may declare an aircraft unfit to fly and in certain cases revoke our Concession.

Routes

Pursuant
to the Mexican Aviation Law and our Concession, we may only provide our services on routes approved under our Concession. Any new route
or change in existing routes must be approved by the AFAC. Domestic routes are subject to our Concession and the Mexican Aviation Law.
Our international routes to the United States are subject to our Concession, the international routes authorization permits issued by
the AFAC, the Mexican Aviation Law, the Air Transport Agreement between the United States and Mexico, dated December 18, 2015 (“ US-Mexico
ATA”), a permit from the DOT to allow us to operate any route into the United States, and authorization from the FAA. The US-Mexico
ATA provides a legal framework for the international routes of Mexican and U. S. carriers between the United States and Mexico. Under the
US-Mexico ATA, any U. S. or Mexican carrier may apply for a permit or authorization to fly between Mexico and the United States.

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  Table of Contents  

Fares

According to the Mexican Aviation Law, concessionaries or
licensees of air transportation may freely set fares for the services provided by them on terms that permit the rendering of services
in satisfactory conditions of quality, competitiveness, safety and consistency. International fares must be approved by the SICT pursuant
to applicable treaties except that fares for routes to and from the United States do not require approval or registration from either
the SICT or any other authority. The fares (both domestic and international) must be registered with the SICT and be permanently available
to users of the services. The SICT may deny the registration of fares set by the concessionaires or licensees if such fares imply predatory
or monopolistic practices, dominance in the market from a competition perspective or disloyal competition which prevents the participation
in the market of other concessionaires or licensees. The SICT may also set minimum and maximum levels of fares (restricting, in that case,
the ability of concessionaires and holders of licenses to freely determine rates), as applicable, for the corresponding services, to promote
competition. The fares will describe clearly and explicitly the restrictions such fares are subject to and will remain valid for the time
and under the conditions offered. The Mexican Aviation Law provides that in the event that the SICT considers that there