UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on June 6, 2012

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2012-0053

This serves as notice to the public of the action described below, taken by the Department official indicated (no 

additional confirming order will be issued in this matter). 

Application of Baker’s Bay Associates, L.L.C. (Baker’s Bay), filed 4/6/2012, for:

XX Exemption from 49 U.S.C. 41101 and applicable economic regulations of the Department to the extent necessary 

to allow Baker’s Bay to engage in indirect air transportation to provide the following service: 

Baker’s Bay will contract with one or more U.S. or foreign direct air carriers to provide transportation of the 

members of its subsidiary, Baker’s Bay Golf & Ocean Club, LLC (Club), between White Plains, New York and 

Treasure Cay, Bahamas.

Applicant rep: Mark W. Atwood (202) 463-2513 DOT Analyst: Esta Rosenberg (202) 366-0572 

Background: Baker’s Bay proposes to make air service available to Club members residing in the New York area and 

to do so during periods of high demand, on a seasonal and irregular basis as demand warrants. Baker’s Bay expects to 

operate about 24 flights annually clustered around holiday and vacation periods throughout the year but anticipates that 

one or more flights will be operated in any given month. Baker’s Bay anticipates that the aircraft will be operated by Air

Canada or Delta Airlines, and other operators may be used as needs dictate. Baker’s Bay may contract for smaller 

(fewer than 60-passenger) aircraft for use in periods of lower demand. Under the terms of Baker’s Bay proposal, 

flights will be restricted to Club members, their families and their invited guests, and guests will not be permitted to pay 

directly or indirectly for air transportation. Only Club members who specifically enroll in the flight program will be 

eligible to use the proposed air services. Dues paid by club members will cover most or all administrative expenses and 

the cost of flights will be charged to membership accounts. Club membership is currently about 100; however, the 

maximum number of memberships is 395. Baker’s Bay will not solicit participants from the general public. Prospective 

members of the Club may be invited to use the charter services as a guest of a participating member. 

Baker’s Bay states that the requested relief is very similar to the exemption granted to The Yellowstone Mountain 

Club, LLC, in Order 2012-2-1, which was based on similar relief granted to Kona Associates in Order 2004-8-8, 

permitting operation of a members-only shuttle operating within the United States to a private resort community. 

Baker’s Bay states that the resort community involved here lies far from the areas of the Bahamas frequented by 

tourists and that there is no direct scheduled air service between New York and the resort area. 

No responsive pleadings were filed. 

D I S P O S I T I O N

XX Approved (subject to conditions, see Remarks and Conditions below)

The above action was effective when taken: June 6, 2012.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the overall state of aviation relations between the United States and 

the Bahamas.
Remarks and Conditions: We have reviewed the facts of record in this matter and have determined that under the 

contractual arrangements described in the application, Baker’s Bay is acquiring access to aircraft and air services on 

behalf of its community members, as well as marketing those air services to community members. In effect, Baker’s 

Bay is holding out and selling air transportation through membership fees and dues, as well as flight utilization 

assessments, which would be used to pay for air transportation, and that under these circumstances, Baker’s Bay is 

engaging in a type of indirect air carrier activity for which authority is required. 

We further find that grant of an exemption, subject to the limitations and conditions stated in this notice, to 

Baker’s Bay to implement the arrangement described by the applicant and summarized above is in the 

public interest. Baker’s Bay proposal will provide additional service options to community members, the 

pool of potential individuals eligible to participate is narrowly defined and is not expected exceed 395 

members plus guests, there will be no advertising, mailings, or mass solicitations to the general public 

about these services, and no seat on the aircraft may be sold to a third party. The direct air transportation 

will be provided by a U.S. certificated air carrier or authorized foreign air carrier. The aircraft to be used 

for this service will be on the air carrier’s operations specifications and all of the flights will be under the 

operational control of the direct air carrier. Our approval is limited to the air services described in the 

Baker’s Bay application. Any additional charters with other groups or individuals would have to be 

provided in full accordance with Department regulations. 

The exemption granted here is limited to the transaction described in Baker’s Bay April 6, 2012 

application. In the event Baker’s Bay wishes to expand the arrangement beyond that approved here, 

including the maximum number of 395 members plus guests or to provide more than 24 flights annually, 

or to offer to provide service to any additional cities in the United States or the Bahamas, it must first 

obtain approval from the Department. We will waive any escrow requirements that would otherwise be 

applicable to Baker’s Bay as an indirect air carrier, provided that adequate notice is given by Baker’s Bay 

to each member or potential member of their rights and responsibilities with respect to the air 

transportation to be provided, including their rights, if any, to refunds of amounts paid. The action taken 

here does not exempt Baker’s Bay from our requirements with regard to charter flights on behalf of other 

entities or individuals. Lastly, Baker’s Bay must meet all applicable Transportation Security 

Administration requirements. 

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant 

qualified to provide the exemption services authorized. 

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was 

consistent with Department policy; (2) grant of the authority was consistent with the public interest; and (3) grant of 

the authority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. 

To the extent not granted, we denied all requests in the referenced Docket. We may amend, modify, or revoke the 

authority granted in this Notice at any time without hearing at our discretion. 

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s 

regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. 

This action was effective when taken, and the filing of a petition for review will not alter such effectiveness. 

An electronic version of this document is available on the World Wide Web at: 

http://www.regulations.gov