Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 311

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 311
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 flight equipment maintenance paid to lessors

Certain lease agreements of the Companyrequire the obligation
to pay maintenance deposits to aircraft lessors, in order to guarantee major maintenance work.

These lease agreements establish that maintenance deposits
are reimbursable to the Company at the time the major maintenance event is concluded for an amount equal to: (i) the maintenance deposit
held by the lessor associated with the specific maintenance event or (ii) the qualifying costs related to the specific maintenance event.

Substantially all major maintenance deposits are generally
calculated based on the use of leased aircraft and engines (flight hours or operating cycles). The sole purpose of these deposits is to
guarantee to the lessor the execution of maintenance work on the aircraft and engines.

Maintenance deposits that the Company expects to recover from
lessors are presented as security deposits in the consolidated statement of financial position.

According to the term of the lease, in each contract it is
evaluated whether major maintenance of the leased aircraft and engines is expected to be carried out. In the event that major maintenance
is not expected to be performed on its own account, the deposit is recorded as a variable lease payment, since it represents part of the
use of the leased goods and is determined based on time or flight cycles. For the years ended December 31, 2024, 2023 and 2022, the
Company recognized supplemental lease payments of US$114,316, US$83,528and US$48,172, respectively.

When modifications are made to the lease agreements that entail
an extension of the lease term, the maintenance deposits, which had been recorded previously as variable lease payments, can be converted
into recoverable deposits and presented as recoverable assets, at the modification date.

During the years ended December 31, 2024 and 2023, the Company
added14and13aircraft to its fleet, respectively (Note 14). During the year ended December 31, 2024, the Company extended the lease
period of10aircraft and twoengines. During the year ended December 31, 2023, the Company extended the lease period of nineaircraft
and sixengines. Certain other aircraft lease agreements do not require the obligation to pay maintenance deposits in advance to lessors
to guarantee important maintenance activities; therefore, the Company does not record or make payments for guarantee deposits with respect
to these aircraft. However, some of these lease agreements include the obligation to make maintenance adjustment payments to