Enrique Beltranena: I think, that’s a question you need to do to RTX. I cannot answer for RTX and how they negotiate their compensation packages. I can tell you what we’re trying to negotiate and how we are trying to negotiate it. And it’s – the problem I have is, I have a limitation from the contractual perspective to mention the number. That’s what we’re planning to do. And I think this is really important – is effective before the end of this quarter, we will release a forecast both of the ASMs that we’ll be flying in the following quarter and second an amount – a total amount that will be accounted as part of the quarter compensation.
Rogerio Araujo: Okay. Very clear. Thank you very much. Have a great one.
Operator: Thank you. One moment for questions. Our next question comes from Guilherme Mendes with JPMorgan. You may proceed.
Guilherme Mendes: Hello, everybody, and thanks for taking my question. I have two follow ups. Actually, the first one is on international capacity. So, following Cat 1 and removing and have you been facing some kind of competition from U.S. carriers by adding more capacity to the U.S. Because we understand that over the Cat 2 situation, most of the – of the most profitable routes were compensated by U.S. carriers? And the second one, also related to capacity is that by removing the capacity from Mexico City airport, if you are adding some additional flights from AIFA or you’re just removing your overall exposure to Mexico City? Thank you.
Holger Blankenstein: So, in terms of the U.S. capacity, I can tell you that our airline focuses on a different market segment than many of the U.S. carriers. We are focused on our VFR core markets flying from the center of Mexico to some of the Mexican heritage population markets in the U.S. that have no direct service, while many of the U.S. carriers focus on leisure destinations in Mexico. And I would also like to remind everyone that we’re seeing an increasing CASM gap between us here in Mexico and our U.S. peers. So, we believe we’re well positioned to take advantage of additional demand in the U.S./Mexico transporter market. Regarding the capacity in the Mexico City metro area, we are currently operating in three airports and we are reducing capacity in Mexico City International Airport.
And, as Enrique mentioned, we’re using that capacity to fortify our U.S./Mexico capacity in the short term. Away from Mexico City in other markets from Mexico City – from Mexico to the U.S., maybe I can just add that.
Guilherme Mendes: Okay. Super clear. Thank you.
Operator: Thank you. One moment for questions. Our next question comes from Bruno Amorim with Goldman Sachs. You may proceed.
Bruno Amorim: Thank you. So, I have two questions. First one, it’s a follow-up on the guidance for margin. As previously discussed, the guidance implies on a significant improvement in the fourth quarter. Is this guidance including any potential benefit from compensations to be received from RTX, or is it net of those effects? I’m just trying to understand, try to extend the margin delivery in fourth quarter could be a good proxy for the future? And the second question is a clarification on the engines that have already been grounded. What type of feedback are you receiving from RTX in terms of the duration of this process? How many days will they need to go through the whole inspection process? Thank you.
Jaime Pous: Hi. This is Jaime. I will answer the first question. Yes, it has the benefit of the compensation of Pratt & Whitney, the guidance for the 4Q. You will see in two lines as mentioned in the call on the other operating income line and on the maintenance expenses line.
Enrique Beltranena: I think on the second part of your question, this is Enrique Beltranena, RTX stated yesterday in their call that they are still thinking about 250 to 300 days of duration for the total turnaround times for the engines.
Bruno Amorim: Okay. Thank you.
Operator: I’m sorry. Thank you. One moment for our next question. Our next question comes from Pablo Monsivais with Barclays. You may proceed.
Pablo Monsivais: Hi, guys. Thanks for taking my question. I have a quick one on the – on basically – I would like to have more color on your ability to source new aircraft in the first half of next year? How do you think that that is happening and the likelihood of you having some extra aircraft in the lease market? Thank you.
Jaime Pous: Thank you, Pablo. First, we have our own purchase order with Airbus. We will be receiving 11 aircrafts in 2024 and 13 aircrafts in 2025. So, we already have that contractual expectation to receive those aircrafts. In addition, we already secured extensions for the 2024 pre-release aircraft to be redelivered and we are looking at other aircraft. What we want to do, Pablo, is we don’t want to fix a short-term problem and create a long-term problem. So, we are really doing analysis aircraft by aircraft on a P&L basis before we decide to bring a few aircrafts to try to mitigate the DPS impact. But we have been really thinking about long term success and short-term profitability.
Pablo Monsivais: Perfect. Thank you.
Operator: Thank you. One moment for questions. Our next question comes from Alberto Valerio with UBS. You may proceed.
Alberto Valerio: Hi. Thank you for taking my questions. So, I would like to follow up on the Mexican and the Aviacion. We see ticket fare very low at this moment. For some routes, even 50% discount. I know that for a while the overlap is small, they start to see very few aircraft at this moment, but do you see any potential liability on privilege for the airline and then you can cover legal dispute, or do you think that they’ll be restricted to that 10 aircraft that they have initial planned for the city and keep that at a small portion of the market? Thank you.
Enrique Beltranena: I mean, again, we need to say that Volaris has advocated for fair competition with equal conditions for all market participants. We have demanded equal treatment from the Authorities and are closely monitoring the implementation process for any new entrants. The good news is this last week, the FAA Authority or the Aviation Authority have made it really clear that they were not going to allow the new airline to have better benefits. And that’s the way they have stated it. It is important also to say that they started selling, but then they interrupted, and their tickets are now on sale [technical difficulty] then remind you guys, I mean with equal – with fair competition, Volaris has always been a very good carrier competing with any other competitors since we were founded.
