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Commitments and contingencies
12 Months Ended
Dec. 31, 2021
Commitments and contingencies  
Commitments and contingencies

25.  Commitments and contingencies

Aircraft related commitments and financing arrangements

Committed expenditures for aircraft purchase and related flight equipment related to the Airbus purchase agreement, including estimated amounts for contractual prices escalations and pre-delivery payments, will be as follows:

    

    

Commitment

Commitment

expenditures

expenditures in 

equivalent in

thousands of U.S.

thousands of

    

dollars

    

Mexican pesos(1)

2022

 

US$

114,563

Ps.

2,358,108

2023

 

314,660

 

6,476,797

2024

 

903,776

 

18,602,869

2025

981,657

20,205,930

2026 and thereafter

 

4,362,996

 

89,805,726

 

US$

6,677,652

Ps.

137,449,430

(1)Using the exchange rate as of December 31, 2021 of Ps.20.5835.

All aircraft acquired by the Company through the Airbus purchase agreement through December 31, 2021, have been executed through sale and leaseback transactions.

In addition, we have commitments to execute sale and leaseback over the next two years. The estimated proceeds from these commitments are as follows:

    

Aircraft sale prices estimated 

in thousands of U.S. dollars

    

In thousands of Mexican pesos (1)

2022

US$

705,500

Ps. 

14,521,659

2023

 

108,000

 

2,223,018

US$

813,500

Ps.

16,744,677

(1)Using the exchange rate as of December 31, 2021 of Ps.20.5835.

For future aircraft deliveries the Company will review the lease and financing structure applicable based on the then current market conditions.

The future lease payments for these non-cancellable sale and leaseback contracts are as follows:

Aircraft leases

in thousands of U.S. 

    

In thousands of Mexican 

dollars

pesos (1)

2022

US$

40,589

Ps.

835,464

2023

 

75,098

 

1,545,780

2024

 

79,244

 

1,631,119

2025

 

79,244

 

1,631,119

2026 and thereafter

 

676,748

 

13,929,842

US$

950,923

Ps.

19,573,324

(1)Using the exchange rate as of December 31, 2021 of Ps.20.5835.

Purchase of additional A320 New Engine Option (“NEO”) family aircraft

On December 28, 2017, the Company amended the agreement with Airbus, S.A.S. (“Airbus”) for the purchase of additional 80 A320NEO family aircraft to be delivered from 2022 to 2026, which was further amended in July 2020 to reschedule the deliveries between 2023 and 2028. Additionally, in November 2021 the Company entered into a new amendment to the referred agreement to purchase 39 additional A32O New Engine Option family Aircraft to be delivered between 2023 and 2029, all to support the Company’s targeted growth markets in Mexico, United States, Central America and South America.

Litigation

The Company is a party to legal proceedings and claims that arise during the ordinary course of business. Certain proceedings are considered possible obligations. Based on the plaintiffs’ claims, as of December 31, 2021 and 2020, these possible contingencies amount to a total of Ps.163 million and Ps.125 million respectively.