Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 104

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 104
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 to return the aircraft
in the agreed upon condition at the end of the lease term. We are responsible for the maintenance, servicing, insurance, repair and overhaul
of the aircraft during the term of the lease.

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  Table of Contents  

The current purchase agreement with Airbus requires us to accept
delivery of 131 Airbus A320 family aircraft in the next seven years (from January 2025 to December 2031). The contractual agreement provides
for the addition of 131 aircraft to our fleet as follows: 14 in 2025, 11 in 2026, 7 in 2027, 19 in 2028, 22 in 2029, 30 in 2030 and 28
in 2031. As of the date of this annual report, Airbus continues reviewing its delivery schedules in light of supply chain disruptions
and production line slowdowns. Since the COVID-19 pandemic outbreak, and further since the war conflicts in Europe and Middle East, Airbus
has notified us of the delay of several aircraft deliveries. Airbus has notified us of possible further delays for the following years.
The basic price for each of the firm-order aircraft to be delivered pursuant to our contracts may be adjusted for changes in economic
conditions as published by the United States Department of Labor. We must make pre-delivery payments at specific dates prior to the scheduled
delivery. The purchase agreement with Airbus does not include the option to have fewer aircraft delivered.

Additionally,
during December 2017, we entered into an agreement with Airbus to purchase 80 aircraft, which Airbus committed to deliver between 2022
and 2026. The new order includes 46 A320neo and 34 A321neo. Under such agreement, we agreed to make pre-delivery payments, which shall
be calculated based on the reference price of each aircraft following a formula established for such purpose in the agreement. In November
2018, we amended the agreement with Airbus to reschedule the remaining 26 aircraft deliveries between 2019 and 2022. During 2020, we amended
the agreement with Airbus to reschedule 98 aircraft, both from this new 80 aircraft order and the previous order, between 2020 and 2028.
In November 2021 we entered into a new amendment to the referred agreement to purchase 39 additional aircraft which Airbus committed to
deliver between 2023 and 2029. Additionally, we exercised its right under the agreement with Airbus to convert 20 A