Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 91

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 91
---
enger revenue, we believe that we will be able to further lower base fares and continue to stimulate
demand.

Grow
by Stimulating Demand in our Existing Markets. We plan to continue to grow our existing markets by adding routes that connect
cities in which we currently have operations and by adding capacity on existing routes where we believe we can continue to stimulate demand.
We also intend to continue to target long-distance bus passengers who we believe may be inclined to transition to air travel. To incentivize
this shift, we set certain promotional fares priced lower than bus fares for similar routes. We believe that these initiatives will encourage
bus travelers to opt for air travel, thereby driving growth in passenger volume.

Continue
our Disciplined Fleet Growth. As of the date of this annual report, we have firm commitments for 128 Airbus A320 family aircraft
that will be delivered over the next seven years, 128 from our purchase agreement with Airbus, including 22 of the next generation Airbus
A320neo and 106 of the next generation Airbus A321neo, the delivery of which commenced in 2016 and 2018, respectively. During 2024, we
incorporated four used A320ceo, two A320neo and eight A321neo into our fleet.

In December 2017, we entered into an agreement with Airbus to
purchase 80 aircraft (46 A320neo and 34 A321neo), which Airbus committed to deliver between 2022 and 2026.

Under such agreement, we agreed to make pre-delivery payments,
which shall be calculated based on the reference price of each aircraft following a formula established for such purpose in the agreement.

In July 2020, we amended the agreement with Airbus to reschedule
the delivery of 80 aircraft between 2023 and 2028. In October 2020, we amended the agreement with Airbus to reschedule 18 aircraft
deliveries between 2020 and 2022.

In November 2021, we entered into a new amendment to the purchase
agreement with Airbus to purchase 39 additional A320 family NEO aircraft which Airbus committed to deliver between 2023 and 2029, under
this amendment we have the option to purchase 25 additional A320 family NEO aircraft and we exercised our right to convert 20 A320neo
aircraft to A321neo, one of which has been delivered as of the date of this annual report. In October 2022, we entered into a new amendment
to