Abstract 2008 Vlg Entrepreneurship Presentation

1 Agenda VUELING CASE: Business plan extract (2003)- spot the opportunity Launch, progress (2004-2007), Second phase (2008 and beyond) SOME THOUGHTS ON ENTREPRENEURSHIP 2 WHY AN ENTREPRENEUR?? Brief bio Carlos Muñoz Factors • Economics degree (ICADE, 1992), • Family tradition (“empresarios” MBA (Harvard, 1998) since 1920s) • 7 years in 4th generation family • HBS, example from friends business AMC, in citrus and juices industry (1992-1996, 2000-2002) • Youngest brother, need to do “my own thing” • 1.5 years at McKinsey in California (1998-1999) • Family support- wife is a daring risk-tolerant American! • Leave to go out “on my own” in late 2002 • Philosophical- “Make a difference”, or “parabola de los • Fund seed company EVIA with Lazaro talentos” Ros (2003), run vueling (2004-2007) • Practical- free, creative, fun, and • Twins!! (late 2007) potentially very profitable • Pondering next project… 1

3 LEARNING AS YOU GO ALONG (NEW B-PLAN 2009) Vueling, the Barcelona based LCC, is poised to become Spain`s second largest carrier in 2009, 1 after merging with its main competitor, Clickair . It will also be Barcelona´s largest airline, with traffic share of approx. 25% of total. Vueling grew in 4 years to over 6M annual pax, €360 million in revenue, and 24 AC fleet. Key achievements Lessons learned • Europe´s second lowest cost based airline (after DO´s Ryanair)2 • High capitalization • Very strong brand recognition: 80/85% • Efficiency, low-cost focus, new fleet awareness in key BCN/MAD markets; 2nd airline • Strong, creative advertising and brand in Spain with highest unaided advertisement • Top financial/industrial/political partners recall (DYM Institute); largest traffic travel • Strong management team website in Spain • Results based, variable retribution (no ESOP) • Highest operational integrity standards: on-time • No Unions performance, dispatch reliability • Highest customer service rating, direct DONT´s consequence of its young, client-oriented culture • Underestimate big competitor (Iberia-Clickair) • Excellent financial returns for launch investors: • Overestimate enthusiasm, underestimate IPO in late `06 for € 450M, with 3,5-7X return experience • Solely focus on web distribution • Highest growth plans despite environment 1. Despite the 45% equity position of Iberia, the merger agreement and political support explicitly rely on the “new Vueling” remaining an independent, Barcelona-based carrier 2. Among publicly quoted carriers Sources: Vueling IPO documents, Alaeo Team analysis 3 4 Business and context will change, so be ready… Secret #1 - Its always about People! • Low pricing and differentiated, closer personal treatment have consistently been the most valued attributes of vueling • At peak (October 07) we were 1325 “vuelings”, including 366 cabin crews, 186 pilots, 177 self-handling staff (5 airports), 95 maintenance and 49 call center agents • Pilots a key group of its own in airlines • “vueling together” cultural activities now in place (BBQs, Friday afternoon drinks, sport events and tournaments etc), originating on “ground-up” initiative of several volunteers across company. • Major corporate objective 2007: to be the favorite airline to work in SW Europe Sources: vueling team analysis; over 10,000 monthly surveys during four years 2

5 People- management team and staff Crews celebrating! Maiden flight (28th june 2004) with leadership team 6 Secret #2- have personal “skin in the game” “fate is at your elbow, make yourself good while life and power are still yours” (Marcus Aurelius) A good (if somewhat dramatic) example 3

7 Secret #3 - Having good mentors helps 8 Secret #4- Your company is a dream coming true, remember to have fun! 4

9 Secret #5- strong will and perseverance are key, and can move mountains!! “by believing in his dreams, man makes them come true” (Hergé) 10 Entrepreneurship is largely about daring to take the step… Borrowing from a recently famous guy, “yes we can”! In business… … as in life! 5

11 Many Thanks! Questions & Answers 6

Abstract 2008 Vlg Entrepreneurship Presentation

by Spanish Fulbright Alumni Association on Feb 23, 2010

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Abstract 2008 Vlg Entrepreneurship Presentation — Document Transcript