Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 312

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 312
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 lessors at
the end of the lease period. These maintenance adjustments cover maintenance events that are not expected to be performed before the termination
of the lease; for such agreements, the Company accumulates a liability related to the amount of the costs that will be incurred at the
end of the lease, since nomaintenance deposits have been made (Note 16).

k) Aircraft and engine maintenance

The Company is required to conduct various levels of aircraft
maintenance. Maintenance requirements depend on the type of aircraft, age and the route network over which it operates (utilization).

Fleet maintenance requirements may include preventive maintenance
tasks based on manufacturers’ recommendations, for example, component checks, airframe and systems checks, periodic major maintenance
and engine checks.

Aircraft maintenance and repair consists of routine and non-routine
tasks, divided mainly into three general categories: (i) routine line maintenance, (ii) major maintenance and (iii) component checks.

(i) Routine line maintenance requirements consist of scheduled
maintenance checks on the Company’s aircraft, including pre-flight, daily and weekly checks, any diagnostics and routine repairs
and any unscheduled maintenance is performed as required. These type of maintenance events are normally performed by in - house trained
mechanics and are primarily completed at the main airports that the Company currently serves, supported by sub-contracted companies.

Other maintenance activities are sub-contracted to certified
maintenance business partners, repair and overhaul organizations. Routine maintenance also includes scheduled tasks that can typically
take from sixto12 daysto accomplish and are required every 24 or36 months, such as24-monthchecks and C checks. All maintenance
costs are expensed as incurred.

(ii) Major maintenance for the aircraft consists of a series
of more complex tasks, including structural checks for the airframe, that can take up to six weeksto accomplish and typically are required
every six years.

Major maintenance is accounted for under the deferral method,
whereby the cost of major maintenance, major overhaul and repair is capitalized leasehold improvements to flight equipment and amortized
over the shorter of the period to the next major maintenance event or the remaining contractual lease term. The next major maintenance
event is estimated based on assumptions including estimated time of usage. The United States Federal Aviation Administration (“ FAA”)
and the Mexican Federal Civil Aviation Agency(Agencia Federal de Aviación Civil-AFAC) authorized maintenance intervals
and average removal times as recommended by the aircraft and components manufacturers of our fleet.

These assumptions may change based on changes in