Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 74

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 74
---
 be associated with complying with such requirements.

Environmental Regulation

We are subject to various federal, state, and local U. S. laws
and regulations administered by numerous agencies relating to the protection of the environment and affecting matters such as aircraft
engine emissions, aircraft noise emissions, and the discharge or disposal of materials and chemicals.

U. S. law recognizes the right of airport operators with
special noise issues to implement local noise abatement procedures so long as those procedures do not interfere unreasonably with interstate
and foreign commerce and the national air transportation system. These restrictions can include limiting nighttime operations, directing
specific aircraft operational procedures during take-off and initial climb, and limiting the overall number of flights at an airport.
None of the airports we serve currently restrict the number of flights (except New York’s John F. Kennedy Airport, which restricts
the number of flights allowed for capacity reasons, not noise abatement) or hours of operation, although it is possible one or more of
such airports may do so in the future with or without advance notice.

In 2016, ICAO adopted a resolution creating CORSIA and provided
a framework for a global market-based measure to stabilize CO2 emissions in international civil aviation ( i. e., civil aviation
flights that depart in one country and arrive in a different country). CORSIA has been implemented in phases, starting with the participation
of ICAO members on a voluntary basis during a pilot phase (from 2021 through 2023), and a first phase (from 2024 through 2026), followed
by an obligatory second phase (from 2027) for member states whose civil aviation CO2 emissions exceed certain thresholds. In 2016, Mexico
signed the “ North American Leaders’ Declaration on Climate, Clean Energy and Environment Partnership” and committed
to participate in the pilot phase of CORSIA. The countries in which we operate are ICAO member states, and thus we may be affected by
regulations adopted pursuant to the CORSIA framework.

Additionally, the government of Costa Rica, through Scope No. 117 in Gazette
No. 116 dated June 26, 2024, issued Presidential Decree No. 44498-MOPT, titled “ RAC-16 Costa Rican Aeronautical Regulation and Emission
Reduction for Costa Rican Aviation.” This decree formally confirms compliance with CORSIA and establishes additional environmental
requirements for air operators.

The USEPA has also adopted rules implementing the ICAO aircraft
engine GH