Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 90

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 90
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model and allowed us to benefit from their procurement power and relationships with key vendors.

Our Growth Strategy

Our goal is to continue growing, while maintaining our leadership
in the Mexican aviation market by operating our ULCC business model and focusing on VFR travelers, cost-conscious business travelers and
leisure travelers. The key elements of our growth strategy include:

Remain
the ULCC of Choice in our Markets. We strive to remain the ultra-low-cost carrier of choice for our existing and new customers
as we continue to focus on providing an affordable, suitable, and efficient travel experience to our customers across our expanding operations
in Mexico, the United States, Central and South America. Our ULCC business model enables us to operate based on low fare levels, and we
intend to continue to maintain low fares to stimulate demand. We believe that we can continue to improve operating efficiencies while
maintaining low costs by:

  fleet transition to cost-efficient Airbus A320neo and A321neo aircraft with higher seat density and lower fuel consumption;  

  spreading our low fixed-cost infrastructure over a larger scale of operations;  

  contracting operating services functions;  

  keeping sales and marketing overhead low; and;  

  leveraging joint procurement benefits.  

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  Table of Contents  

Grow
Non-passenger Revenues while Maintaining Low Base Fare to Stimulate Demand. We intend to increase our non-passenger revenues
by further unbundling our fare structure and by offering our passengers new and innovative products and services. Through our multiple
points of interaction with our customers during each stage of their travel, from ticket purchase through flight and post-trip, we have
the opportunity to offer third party products on which we receive commissions, such as hotel rooms, car rentals and trip interruption
insurance. In addition, we sell in-flight products and we plan to introduce and expand upon products and services that are unrelated to
passenger travel. We provide a membership-based ultra-low-fare subscription service called V-Club which had approximately 1.3 million
members as of December 31, 2024. The number of V-Club members increased by 60% in 2024, compared to 2023. Our zero-fare includes a V-Club
membership to incentivize more customers to join our discount club and generate repeat business that will reduce our customer acquisition
cost. We also continue to expand the cargo transportation services we provide on our aircraft. As we broaden our ancillary products and
services and increase our non-pass