8 Operations SOCIAL ENTERPRISE While the operation of Lautan Megah can only be sustained by charging commercial rates for passage, her primary role will be to support community programs and to be ready for rapid deployment to deal with emergency situations. Island Aid will balance the operations social bottom line with our financial bottom line so that the integrity of our social mission is never compromised. Lautan Megah's operation will facilitate transport and communications to areas that are desperately under-serviced and commercial revenues will not be solicited for any commercial operations that do not fully support this core objective. We will progressively load the vessel with equipment and core non perishable emergency supplies. We have storage aft and in the forepeak for that. In an emergency we will be able to remove some of the cabin partitions below and stow aid supplies floor to ceiling if that is what is needed. The large covered decks can take a lot of cargo of the type that is needed. Bulky rather than heavy. Staff and crew who man and administer the commercial operation of Lautan Megah will be paid fair and appropriate salaries in line with local marine industry standards. Volunteers will not be expected to take responsibility for normal day to day operation. Local industry standards will be regarded as the bare minimum expected. Island Aid will train staff and crew to meet international standards of safety awareness and technical competence. Island Aid will engage full time accounting staff and all financial records will be entered into an on-line web based accounting system. In this way directors and auditors will have full access to the organizations books at any time. Donors will be granted access to these accounts on request. The Luatan Megah operation financial records will be kept distinct from other Island Aid program accounts. Any taxes and fees that are imposed on the vessel operation will be paid promptly. Surplus revenues from the vessel operation will be allocated to other Island Aid community programs and it is hoped that the shipping enterprise will in future fully fund all Island Aid core activities during "Disaster Readiness" mode. COMPETITION Island Aid's board are acutely aware that the supply vessel operation must not be seen to be competing with other existing ferry operators. Our tax free status will not be leveraged to gain a competitive advantage and our tariffs will be set at rates that are the equivalent of existing alternative service for tourists wishing to cross the Mentawai Straits.   At this time only one vessel is offering a similar service. The Deborah is a 65ft converted fishing boat powered by a single converted truck engine. The vessel has not attracted trade from resort owners due to the owners insistence on package charter rates the equivalent of 12 seats at $110 per person one way. The vessel has poor stability and so offers a diminished experience to passengers compared to crossing on a charter boat. The level of stability and the sheer size of Lautan Megah will raise the standard of overnight services substantially and offer guests the security of international survey standards for the first time. A new air service started operating from Padang's MIA airport to Rokot airstrip near Tua Pajet on Sipura. The airport at Sipura is only 650 m long and the largest aircraft endorsed to land is a CASA 212 Airtruck. This aircraft is capable of carrying up to 18 passengers but only 10 surfers plus boards. There is a strict limit of 2 boards and 15kg of luggage per passenger. The cost for a surfer with boars is minimum US$110 one way with an impossibly small luggage allowance. The condition of the airport and the lack of any road network to link it to population centers on the island result in a diminished guest experience. Download this Excel Worksheet to test the impact of changing assumptions. BUSINESS PLAN The key to our strategy is the strong support we enjoy from the MMTA (Mentawai Marine Tourism Organization) The MMTA represents 5 resorts and 30 charter boats with a total capacity of over 400 beds. Some of the charter boats will re-locate to home base in the islands once we demonstrate that our service is better for them and their guests. Crossing the 80-100nm wide Mentawai Straits in small charter boats is pretty miserable when the wind gets up and that happens enough for everyone to be interested in the service we will provide.  Guests who elect to fly to Mentawai still face the prospect to a 30nm speed boat ride to reach their resort and that is both expensive and very punishing.... not to mention wet a lot of the time. We will offer day transfers from the airport to the resorts as well as overnight door-to-door transfers from Padang to the resorts and back. We have only counted the 16 air-conditioned bunks below in the projections. We will build a weather proof canopy over the forward deck and have clears to keep it dry. We are building removable combo seat/bunks along each side and more in the center of this big deck area. Still leaves lots of room for relaxing and it is the best place to be when at sea... lots of breeze and quiet. The 8 deck berths will be offered at a reduced rate of say $75 one way. This will give us bonus revenue and adds to our capacity during an emergency. There will be plenty of wide seats aft as well for sleeping in an emergency. Net revenue will be used to fund Island Aid programs throughout the islands. The idea is to be self funding long term and keep the ship in tip top condition and fully equipped.