Southern Air Charter Company Limited

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Project Number: 
BH 3388A – 01
Expected Consideration Date by the Board: 
06/10/2014
Date Posted: 
05/07/2014
Company: 
Southern Air Charter Company Limited (“SACCL Bahamas”)
Sponsoring Entity: 
Not applicable
Financing Requested: 
Up to US$2.100.000
Sector: 
Transportation and Logistics
Location: 
Bahamas
Country: 
Scope Objective: 

Southern Air Charter Company Limited (“SACCL Bahamas”) is a Bahamian owned company that operates from the Sir Lynden Pindling International Airport in Nassau, Bahamas. Nassau serves as the hub of commercial, political and economic activities in the Bahamas, an archipelago of about 700 islands and cays.

This expanse of geography requires an efficient means of transportation to effectively respond to the inter-island travel needs of government officials, private sector business people, vacationing tourists and leisure traveling nationals. SACCL Bahamas has strategically positioned itself to respond to the needs of the traveling public of whatever economic strata and functional purpose, whose travel needs, demands the services of an efficient and timely airline operator whose dedication to service and customer comfort is unequalled in its market place.

Since commencing operations in late 1998 SACCL Bahamas has brought to the traveling public schedule flights to several Family Island destinations and charter destinations domestically and internationally.

Environmental Review: 

Environmental and Social Review
According to the IIC Environmental and Social Sustainability Policy, this is a Category B project: potential environmental and social risks and impacts are limited to the project site, largely reversible, and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.  The environmental and social issues reviewed during project appraisal pertain primarily to occupational health and safety, labor relations, and solid and liquid waste management.

Environmental Management
Nassau Airport Development Company (“NAD”) is the company in charge of the administration and operation of the Nassau Bahamas, Sir Lynden Pindling International Airport. SACCL Bahamas operates its flights to the various islands of the archipelago from this airport.  SACCL Bahamas is obliged under its Sublease Agreement with NAD to comply with certain environmental and social conditions, including, inter alia: operating the premises in a prudent and responsible manner and with all due care and due diligence with respect to environmental matters; cleaning up any accidental releases of hazardous substances which have caused an adverse environmental effect; and complying with all applicable environmental laws and regulations relevant to airport operations. SACCL Bahamas’ Operating License Agreement with NAD includes these same conditions.  In addition, the Operating License Agreement stipulates that within six months of the execution of the license, SACCL Bahamas must present to NAD for approval a written proposal of the company’s policies and procedures with respect to environmental matters.  The procedures must include a separate environmental emergency response plan, and cover the following additional topics: fuel storage and handling; storage, transport, use, handling, containment, clean-up and disposal of hazardous materials and special waste; water quality practice; and waste management. Development of these policies and procedures will be included as a required activity under the Project’s Environmental and Social Action Plan (ESAP).

NAD is in the process of consolidating its own environmental and social policies and procedures, and has recently established an office at the airport dedicated to environmental and occupational health and safety management.  This office will soon begin periodic inspections of each airline´s maintenance facilities, including those of SACCL Bahamas. In addition, the airport security authority (Airport Authority) and Flight Standards Inspectorate (FSI) currently conducts periodic inspections of the SACCL Bahamas maintenance workshop, primarily to ensure that hazardous or flammable substances are being managed properly.

Occupational Health and Safety
SACCL Bahamas employees are provided with periodic hazard training by a third party specialist contracted by the company for this purpose.

Labor
The company manages its employee relations according to its Employee Handbook. The Handbook details the rules and regulations applicable to all employees, and the obligations of the company towards its employees.  These obligations include setting working hours that comply with Bahamian law, and providing overtime and holiday payments as well as vacation entitlements.  Sick and maternity leaves are also granted by the company.  After a ninety day probationary period employees are eligible to participate in a company-sponsored group health insurance program.  The Employee Handbook also defines the process by which employees may resolve grievances with one-another or with management. 

All employees may freely associate with organized labor groups. The company has committed to developing a human resources policy statement for inclusion in the Employee Handbook and to codify its status as an equal opportunity employer.

Solid and Liquid Waste Management
SACCL Bahamas operations produce little solid or liquid waste.  Due to the nature of the particular aircraft engines used by the company, lubricants rarely need to be replaced.  Disposal of wastes that are generated is handled by a dedicated service provider contracted by NAD.

Monitoring and Reporting
SACCL Bahamas will submit to the IIC a yearly environmental and social monitoring report.  The report will summarize data related to the Project’s environmental and occupational health and safety management, and will document compliance with the Project’s ESAP.