Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 48

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 48
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 employees, it may be increasingly
challenging to maintain our company culture. Our company culture, which is one of our competitive strengths, is important to providing
high-quality customer service and having a productive, accountable workforce that helps keep our costs low. As our operations and geographic
diversity continue to grow, we may be unable to identify, hire or retain enough people who meet the above criteria, including those in
management or other key positions. If we fail to maintain the strength of our company culture, our business, results of operations and
financial condition could be harmed.

Increased labor costs, union disputes, employee strikes, and other labor-related
disruption may adversely affect our operations.

Our business is labor intensive, with labor costs representing
10%, 13%, and 15% of our total operating expenses for the fiscal years ended December 31, 2022, 2023, and 2024, respectively. As of December
31, 2024, 73% of our workforce was represented by the general aviation union (Sindicato de Trabajadores de la Industria Aeronaútica,
Similares y Conexos de la República Mexicana-STIAS) and thereby covered by substantially the same collective bargaining agreement
entered into between us and each of our subsidiaries. The collective bargaining agreements are negotiated every two years in respect of
general labor conditions and every year in connection with wages. Our current agreements with this union will expire in February 2028
with respect to salaries and benefits. The terms and conditions of our future collective bargaining agreements may be affected by the
results of collective bargaining negotiations at other airlines that may have a greater ability, due to larger scale, greater efficiency
or other factors, to bear higher costs than we can. We cannot assure you that our labor costs going forward will remain competitive because
in the future our labor agreements may be amended and new agreements could have terms with higher labor costs or more onerous conditions, one or more of our competitors may significantly reduce their
labor costs, thereby reducing or eliminating our comparative advantages as to one or more of such competitors, or our labor costs may
increase in connection with our growth. Traditionally, the relationship between Mexican legacy carriers and their unions has been complex.
We may also become subject to additional collective bargaining agreements in the future as non-unionized workers may unionize or unionized
workers may decide to join a different union. If we are unable to reach agreement with any of our unionized