Vuela

completed

The IFC investment is an IFC revolving credit line of $30 million for the financing of aircraft pre delivery payments and a $10 million loan to Controladora Vuela Compañia de Aviación, S.A de C.V. (Controladora) with Concesionaria Vuela Compañia de Aviación, S.A de C.V. as the guarantor (Vuela or the company), a newly established low cost airline, branded as Volaris. The company’s main line of business will be passenger air transportation mainly within Mexico. Vuela commenced operations on March 13, 2006. It will initially operate five routes with four aircraft throughout Mexico from its base at Aeropuerto Internacional de Toluca. By year five of operations, the company plans to operate over 20 Airbus A319 aircraft and servicing over 30 routes. Vuela will provide substantially discounted fares in a market historically marked by limited competition and high fares. This will stimulate demand and make air transportation accessible for a larger share of the Mexican population, promote connectivity, and economic growth.