So much for zipping through airport security for people willing to pay $199 per year and have their fingerprints and iris images scanned to be pre-approved.
Clear, the largest company to leverage the Registered Traveler program in the U.S., has “ceased operation” as of 11 pm PST today and their parent company, Verified Identity Pass, Inc., is in the deadpool. They were “unable to negotiate an agreement with its senior creditor to continue operations.” Users were notified this evening by email.
The service was popular – it was used 250,000 times at Washington, DC airports alone. Overall, the company said, over 2.5 million people were processed using Clear. It operated security lanes at 20 U.S. airports: Albany, Atlanta, Boston’s Logan, Cincinnati, Denver, Indianapolis, Jacksonville, LaGuardia, Little Rock, New York JFK, Newark, Oakland, Orlando, Reno, Salt Lake City, San Francisco, San Jose, Washington, D.C.’s Reagan and Dulles, and Westchester.
Damn I just renewed last month.. Oh Well every time I went to use the service it only saved me a a few minutes and I got glares from all the people
I cut in front of.
I wish I could submit that comment to tweetingtohard.com
God damn it, I try to be coy, and I spell the stupid domain wrong. TweetingTooHard.com.
Instant Karma
If purchased in the last 90 days, call your credit card company for a refund…
Does this mean there is less business travel or more video conferencing?
I think it just means there aren’t that many businesses willing to pay a $199/employee/year tax to get employees through a security line faster.
I loved the service. I get it that they can’t secure the funding, but the email and the way it was handled left a bad taste in my mouth. They had a loyal base, and the communication about the service was so robotic and so un-relationship like. Makes you think that things went down in a bad way internally. Also really unfortunate for all the folks they employed.
it’s rare for a company to unwind cleanly. They were likely hoping for funding to the very last minute, and the negative press around them being in trouble would have hurt their chances. So, surprise!
used the service every time I travelled. These guys saved me from missing so many flights. they will be missed.
Why doesnt the damn govt do something useful and take over this, continue to charge $199 to frequent flyers and businesses willing to pay for the convenience. It does make sense to separate the registered travelers from the average traveller.
The one aspect you missed Mike, is that they did a coupon offer on deal sites last week to see if anybody would respond.
http://www.tech...ear-coupon-code
Nobody did, so THEN, and ONLY THEN did they decide to shut down.
Burn.
I’m not sure about that logic. If their business really rested upon getting responses to a poorly promoted coupon program in less than a week, then they deserve to go under.
Strikes me that those coupons were probably a bit of a “hail Mary” pass. A futile attempt to get a little revenue to forestall the inevitable.
I think that the whole concept is flawed. Bruce Schneier has written fairly extensively about the stupidity of airport security. Why should people have to pay $200 to opt out of a totally flawed system? Why not just fix the system?
Also, why are/were they only charging $200? If you make over $100K/yr, your time is worth about $50/hour. If you take more than 2 trips, you’ve already recouped your investment. If you’re the kind of high-powered businessman for whom this program was designed, and you travel a lot and can save yourself at least an hour or two per trip, wouldn’t you willingly pay more than $200 for all the time-saving?
I think your math is flawed. Everyone who used the service said that it only saved them a couple minutes at best. You’d have to fly an awful lot to make it worth it.
Not necessarily. You only had to not miss one important meeting due to a line of tourists going to / coming from Disney World.
I’ve flown round trip, DC to Orlando 50 times in the last year. Never been more than a 15 minute wait on either end.
You poor man.
I used to commute San Jose – LAX 2-3 times a week. Clear Pass was a life saver on the SJC end, which would see random line backups of up to an hour. The choice was get there at 6am for a 7.30am flight or get a Clear card. Same for Oakland (which has got much better recently) where you could easily spend an hour or more in line.
We’ll miss you Clear, even though you took $360 of our money last month for renewals…
ouch..dat hurts
I loved this service. Made my wife get it as well. Mike is this truly game over?? the abrupt way this ended made me think that perhaps somehow they will manage to get something going shortly. Truly great service- also thought the folks at the airport they hired were top notch- always very friendly. The big flaw i thought was that the signup was very very complicated-many people I knew wanted to sign up but did want to go through the crazy sign up procces. The israelis have a similar program with 3 minute sign up – makes much more sense……
I used it between Albany and Orlando when it was $99 a year and it worked well for me. I thought their biggest issue was lack of enough airports
How does this differ from Nexus outside of the additional cost / subscription?
I am sad to see this service go. It saved me loads of time at US airports – particularly DC, SF and NYC. As a frequent business traveler, I found it well worth the money for the time it saved me.
What happens to all the passenger data?
My question exactly. For a company that can’t get a loan, they might earn a quick buck by selling our data. This makes me sick, I really loved this service. I have had great experience with it.
A major problem – what happens to the 250,000 fingerprint and iris images? Who now owns them and how does one gain access.
So now a judge will make that decision? We the people, unless a judge thinks otherwise?
This is a major problem. As this failure demonstrates, systems that are dependent upon central authorities to authenticate have more than just security issues. The separation of authentication procedures from the content will continue to cause some major problems.
It’s past time to consider distributed authentication based upon Content-Centric Security.
As a customer, I now have to wonder, will all of the identity data they collected be properly destroyed? When I researched the company originally I was content with their security model for storing the data which they didn’t keep on the cards, but now have to wonder what will happen to it…
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Clearly all of the commenters were the audience for this thing – I had wondered. The absurdity (and sheer arrogance) of a service that allowed you to pay to skip the security theatre had always offended me, and I can’t be happy enough to see them go.
Your argument is fallacious. You didn’t pay to skip the security theater, you still had to undergo security screening, and in fact had to undergo a HIGHER LEVEL of security clearance, including biometric scanning tied to a full TSA and criminal background check. The average traveler doesn’t have to undergo those checks to fly. In addition, you still had to go through the security machines, take shoes off, etc. The only benefit was time saving for those with clean records, a full travel schedule, and a willingness to pony up the dough. But don’t think for a minute that Clear flyers were bypassing security — they underwent MORE security scrutiny, not less.
David, you describe the service as if it was like tipping someone to get through security faster. It’s nothing of the sort. The reality is that they do a lot of background and invest a lot in hardware to ensure (a) that the individuals are exactly who they said they were and (b) that those individuals were low security risks. Participants pay to cover the costs of that service and the end result is that the airport security can process those individuals more quickly. The customer is simply paying for a more costly system that allows quicker processing.
I understand your frustration. When sitting in a security line, it was annoying to see people flying through the Clear program. But the basic business model of a more costly program offering quicker service is repeated in many industries, and makes sense, economically and operationally.
Apparently Clear couldn’t make the model work in this case. It will be fascinating to discover whether this is a flaw in their business model, execution, or just the practical challenges in the credit markets.
Paying to skip the line was exactly what it was. You still had to go through the x-ray/metal detector, you just got to ditch the line. The whole card/scan thing was just BS; why would the extra ID verification justify moving up in the line?
If the FAA wanted to, why not just have a “premium line” or for extra $$ they’d let you cut. No need for an extra middleman.
Oh please, spare us. “Sheer arrogance”? Every time someone pays extra for different treatment its sheer arrogance? I guess life is only fair if everyone is equally inconvenienced. Brother
I JUST got clear, and my wife JUST renewed. This leaves a bitter taste in my mouth, just as another commentator stated.
PPPs (public private partnerships) and concessions only work if you have a culture of honesty in the private sector, which the U.S., simply put, does not.
Here is one fine example….
I enjoyed this service, especially since I travel A LOT. Now, I suppose I’ll have to deal with the strollers, laptops, and people who don’t know how to move through security again. I can handle that though.
What I’m concerned about is where does my persoanl info i.e. retina scan, fingerprints, et.c go?
I signed up b/c I just “knew” it would ultimately lead to better security & boarding procedures in the future. All it did until now was bypass airport security lines; I still had to go through scanners, take shoes off, show laptop, etc. I’m sorry to see it go — hoping this is temporary — but I can wait in line like everyone else. Phooey.
I really thought Clear was the future. I’m in Orlando at it was so easy to go through and not wait on holiday lines.
Very sad they went under. I have had the service for a year and used it at SFO for every trip. It was a lifesaver for me. I always knew I would make my flight.
Do you thinkany of the airlines will step up and or the TSA and honor current Fly Clear participates with access to frequent traveller lines?
Why doesn’t the NTSB offer this service? Seems like its a no brainer and it would be much easier to streamline. As people are concerned about security of their info with a start up company it would be much better if a govt agency was holding this info.
I’ve been looking at the maps on FLOcard.com and suspect a deal is in the works for them to take over the Clear customer base. Just a few months ago, they only had about a dozen airports listed on their site. They now have more than twice that, and every single one of the Clear airports is represented. I’ve emailed them and Clear to inquire about the possibility, but no word yet. I suspect this is coming but details are still being worked out.
at http://www.flocard.com/ there is a short release that give the impression they are waiting for TSA approval for this (taking over CLEAR’s locations/customers).
Hopefully someone will buy the assets of Clear and resurrect the service.
This service was invaluable. I have a CPAP machine that *ALWAYS* has to be inspected. This was my way of making up that lost time and hassle. If you recently renewed, just dispute the charges with your Credit card issuer due to “service not provided”.
-D
I am stunned that so many citizens would voluntarily give up their fingerprints, their iris scans, etc., just to save a few minutes at the airport.
I’m not a member of the “tinfoil hat” club, but apparently the rest of TC’s commenters don’t have the problem with giving up privacy and personal liberty for the sake of convenience that I do.
I am a frequent flier and never would have used this service for that reason. If similar measures ever become required by the TSA or the government, I’ll be protesting in the streets for the first time in my life.
Finally, a voice of reason in all of this debate! The real issue is the total lack of privacy we all suffer due to the Big Brother “security” system at airports and elsewhere. The bank even wants your fingerprint to cash a check! Where will it end? Will 2010 become “1984″? This is NOT change I can believe in!
Just so folks understand – you didn’t get to skip the security “experience”. You simply had priotity access to the checkpoint itself. Still had to remove your shoes, take off your coat, your 3-1-1 plastic bag, laptop out, etc. It did, however save time in the long queues waiting to get to the checkpoint and for that I’ll be sad to lose my CLEAR account.
I thought the service was great. Very efficient, the sign up was easy. The idea is great. for David, above, there are lots of places where people pay to speed things up. They are getting anything for free or anything you couldn’t get if you wanted to pay for it. We constantly make time/$$ tradeoffs. I hated standing in line, so I paid a bit more. My choice. I hope that this is bought and restarted.
Don’t you think the numbers are inflated here: 2.5 million people were processed – at $199 a pop – that is a serious number to cease operations…So that must have only been transactions at checkpoints.
If you travel roundtrip each week for 50 weeks, you may only use this only 100 times a year if both O&D airports have it.
The TSA would be more efficient just charging folks $2 each for a faster security line.
I have to assume there were very few takers to this service. In Atlanta – I only ever saw 5 travelers using this on Monday mornings when the business travelers are the most active.
I’m betting that 2.5 million processed does not mean 2.5 million paying members…I was “processed” probably close to 100 times just in the 2nd half of last year.
Also, there were a serious number of people who got their first (and sometimes 2nd) year for free thru elite member bonuses through other frequent traveler programs (Hyatt Diamond, Marriott Platinum, etc…).
Of course the CIA/NSA/DHS must be pissed. How else can you get the masses to volunteer everything but the length of their hairs on their ass? (I am sure that comes up in the “touchless” search machines at the airport as well.)
A blow to big brother. Can’t believe they bailed out Goldman Sachs but not these guys.
What I don’t understand is where is TSA in all of this? Verified Identity Pass (Clear) obviously had a contract with TSA in order to be able to fast-clear passengers and even operate at the airports. Doesn’t TSA vet the financial stability of the companies that they issue contracts to? Also, since VIP clearly is in possession of a wealth of information about the 250K+ people that signed up with them, and this information obviously has both value and the ability to be misused – why isn’t the TSA stepping in and taking possession and custody of the data? I hate to be paranoid but…..
This does beg the question, who now has all of our information?
I was a Clear subscriber right from the start of the program and, as a very frequent traveler, I’m sad to see them go — they made it very predictable ow much time it would take me to get through security (10 minutes max from front door of almost any airport to the other side of security line) . But I suspect they were a victim of two things. 1) The TSA is getting more effecient at processing people through the regular security process and 2) the security lines are shorter because people are traveling less during the recession. I noticed the last several times I went to major airports, the regular lines were short enough that I didn’t even bother going through the Clear Lane. Besides, I always felt a little guilty when I got to go to the front of the line after doing the Clear fingerprint/retina scan. Still, I hope our personal information is being properly protected in the asset sale or merger process.
I’m going to miss them too, but I would like a refund since my pass didn’t expire until 2014.
This really sucks for frequent business travellers. Waiting in summer security lines four or six times a week at major hubs is not a lot of fun.
I’m not holding my breath for FLO Card to pick up the Clear lanes. FLRP look like a penny stock with no assets. They will probably go under as well.
As for the TSA getting better, you must be flying at a different airport to me. Come back in a month and tell me how wonderful it is to fly in July.
Clear had 200,000 customers, paying from $99-$199 a year based on when they signed up. And they raised $44m last year in a financing. This looks to me like a bank (’senior creditor’) pulled the rug out from under them. They should be named and shamed.
That is a ridiculous thought… these guys were given 44 million and pissed through it pretty fast without showing they can recoup the money for the investors. They only had one method for making money as opposed to multiple revenue streams and they were very short sighted in how they worked with their small consumer base. Add to this that the application savings is based on when and where you travel from or their is, or was, no reason to join and you have a potential disaster.
why don’t we all just get fingerprinted and iris scanned? Then the whole thing will go faster. Until some douche forgets he has a can opener in his carry-on.
PS – why can I carry-on a Pelican Case of hard drives, laptops, cables, batteries, and camera equipment, but can’t get a damn Aquafina through?
Another board reports that this is the creditor. You might want to verify before bombarding them with questions.
Spark Capital
137 Newbury St.
8th Floor
Boston, MA 02116
I was an early adopter of the Clear service and loved it. My initial membership was only $99 and worth it, $199 was a bit high but still worth it when my travel schedule was going to be full. It made a huge difference in both my travel time and stress levels. I recommended the service to many of my colleagues and they loved it as well (plus I got extensions on my account for the referrals). The airport reps were always kind and courteous making the start of many a trip much more positive. I expect the shut down was not a pleasant process as employees and subscribers both were caught by surprise. Yes, the lines have been shorter as of late, and the slowdown of airport expansion was disappointing, but nevertheless, I was saddened to hear the news and will miss the service, especially now that I am back to weekly flights.
Working at Orlando International, it was clear to me that Fly Clear was going to bust. In exchange for giving up a substantial amount of personal information and a hefty amount of cash, you were allowed to use the same exact security line as the airport employees and disabled passengers. The difference being that a disabled passengers gets to bring traveling friends and family with them while the Fly clear passenger is SOL if they happen to be traveling with a family member, friend, or business associate(s) that doesn’t have the card. So the only time you got a payoff was if the regular lines were long and you were traveling solo, or with other Fly Clear card holders. Also, on the return trip, the card was useless unless you happened to be at another Fly Clear airport. Working near the security zone, it was rare to see more than a handful of Clear passengers in any given hour. What TSA should do is offer up an express lane that’s opened during peak times and charges $20.00 a pop to use if people are in a hurry – keep it simple.
I 100% agree with Mark. Incredibly simple for TSA to have an express lane that you pay for – $20, cash only — if you want to get thru faster. I’d pay every bloody time. They’d make a boat-load of cash that (assuming the staff didn’t pocket it) could be spent on more x-ray machines and magnetometers. Of course, the objection will be “oh, no, 9/11 was a national trauma, we’re all in this together, it’s not fair if the more affluent get to avoid the lines…”. That’s B/S of course, but that’s what the whiners will say.
I just received the following from Clear today:
—
Clear Member Update
Dear [removed],
In response to questions raised by our members, Clear would like to offer the following information:
Clear Lanes Are No Longer Available.
At 11:00 p.m. PST on June 22, 2009, Clear ceased operations. Clear’s parent company, Verified Identity Pass, Inc., was unable to negotiate an agreement with its senior creditor to continue operations. Verified Identity Pass regrets that Clear will not be able to continue operations.
How is Clear securing personal information?
Clear stands by our commitment to protect our customer’s personally identifiable information – including fingerprints, iris images, photos, names, addresses, credit card numbers and other personal information provided to us – and to keep the privacy promises that we have made. Information is secured in accordance with the Transportation Security Administration’s Security, Privacy and Compliance Standards.
How is Clear securing any information at the airports?
Each hard disk at the airport, including the enrollment and verification kiosks, has now been wiped clean of all data and software. The triple wipe process we used automatically and completely overwrites the contents of the entire disk, including the operating system, the data and the file structure. This process also prevents or thoroughly hinders all known techniques of hard disk forensic analysis.
How is Clear securing any information in central databases and corporate systems?
Lockheed Martin is the lead systems integrator for Clear, and is currently working with Verified Identity Pass, Inc. to ensure an orderly shutdown as the program closes. As Verified Identity Pass, Inc. and the Transportation Security Administration work through this process, Lockheed Martin remains committed to protecting the privacy of individuals’ personal information provided for the Clear Registered Traveler program. Lockheed’s work will also remain consistent with the Transportation Security Administration’s federal requirements and the enhanced security and privacy requirements of Verified Identity Pass, Inc.
The computers that Verified Identity Pass, Inc. assigned to its former corporate employees are being wiped using the same process described for computers at the airports.
Will personally identifiable information be sold?
The personally identifiable information that customers provided to Clear may not be used for any purpose other than a Registered Traveler program operated by a Transportation Security Administration authorized service provider. Any new service provider would need to maintain personally identifiable information in accordance with the Transportation Security Administration’s privacy and security requirements for Registered Traveler programs. If the information is not used for a Registered Traveler program, it will be deleted.
How will members be notified when information is deleted?
Clear intends to notify members in a final email message when the information is deleted.
Who is monitoring this process?
Clear is communicating with TSA, airport and airline sponsors, and subcontractors, to ensure that the security of the information and systems is maintained throughout the closure process. Clear thanks these partners for their continuing cooperation and diligence.
How can I contact Clear?
Please visit our website, http://www.flyclear.com, for the latest updates. Clear’s call center and customer support email service are no longer available.
Will I receive a refund for membership in Clear?
At the present time, Verified Identity Pass, Inc. cannot issue refunds due to the company’s financial condition.
Has Verified Identity Pass, Inc. filed for bankruptcy?
At the present time, Verified Identity Pass has not commenced any proceedings under the United States Bankruptcy Code.
Clear Customer Service
Clear, 600 Third Avenue 10th Floor, New York, NY 10016
http://www.flyclear.com
Was working last night at Orlando International, and there was a small sign at the security zone noting the demise of FlyClear and all their scanning devices had been removed. Feel bad for all the FlyClear employees and Orlando is not a particular good place to be hunting for a new job.