Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 259

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 11
Chunk 259
---
 directly (i) by having
an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in
the holder’s name, or (ii) by having ADSs registered in the holder’s name in the Direct Registration System, or DRS,
or (b) indirectly by holding a security entitlement in ADSs through a broker or other financial institution.

The DRS is a system administered by The Depository Trust Company,
also referred to as DTC, pursuant to which the depositary may register the ownership of uncertificated ADSs, which ownership is confirmed
by periodic statements sent by the depositary to the registered holders of uncertificated ADSs.

We will not treat ADS holders as one of our shareholders and
ADS holders will not have shareholder rights under Mexican law and our by-laws. A deposit agreement among us, the depositary and ADS holders,
and the beneficial owners of ADSs sets out ADS holder rights as well as the rights and obligations of the depositary. New York law governs
the deposit agreement and the ADSs.

Dividends and Other Distributions

The depositary has agreed to pay to ADS holders the cash dividends
or other distributions it or the custodian receives in respect of the underlying CPOs or other deposited securities, after deducting its
fees and expenses described below. ADS holders will receive these distributions in proportion to the number of CPOs their ADRs represent.

Cash
Dividends and Distributions. The depositary will convert any cash dividend or other cash distribution we pay on the shares
underlying the applicable CPOs into U. S. dollars, if it can do so on a reasonable basis and can transfer the U. S. dollars to the United
States. If that is not possible or if any Mexican federal government approval is needed and cannot be obtained, the deposit agreement
allows the depositary to distribute the foreign currency only to those ADS holders to whom it is possible to do so. It will hold the foreign
currency it cannot convert for the account of the ADS holders who have not been paid. It will not invest the foreign currency and it will
not be liable for any interest. If the depositary can only convert a portion of the cash dividend into U. S. dollars, it can either distribute
the unconverted portion in the foreign currency or hold the foreign currency on the account of the ADS holders. If the exchange rates
fluctuate