Abstract 2008 Vlg Entrepreneurship Presentation

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Agenda
VUELING CASE:
Business plan extract (2003)- spot the opportunity
Launch, progress (2004-2007), Second phase (2008 and beyond)
SOME THOUGHTS ON ENTREPRENEURSHIP
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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…
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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,
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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
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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
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People- management team and staff
Crews
celebrating!
Maiden flight (28th
june 2004) with
leadership team
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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
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Secret #3 - Having good mentors helps
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Secret #4- Your company is a dream coming true,
remember to have fun!
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Secret #5- strong will and perseverance are key,
and can move mountains!!
“by believing in his dreams, man makes them come true” (Hergé)
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Entrepreneurship is largely about daring to take the step…
Borrowing from a recently famous guy, “yes we can”!
In business… … as in life!
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Many Thanks!
Questions & Answers
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