Fast-pass security lanes at San Jose, other airports close down

Lisa Fernandez and Sharon Noguchi

Jun. 23, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- Frequent fliers who shelled out $179 a year for front-of-the-security-line airport privileges were back in the queue with the cattle Tuesday.

Clear, a company that offered fast-track clearance passes at about two dozen airports, including in San Jose, Oakland and San Francisco, abruptly closed shop this week. While the company announced Tuesday it won't be offering refunds to its 260,000 customers nationwide, it tried to assure passengers that all their sensitive personal data -- from iris scans to Social Security numbers -- is safe.

"This sucks," said Boris Seibert, 39, of Capitola, a director of sales headed from San Jose to Phoenix on Tuesday morning. "This was so cool, it was the best thing ever. You used to get right to the front of the line."

When he applied for the annual pass, "they asked a lot of invasive questions," Seibert said. But getting the pass "was worth it, especially on a Monday morning."

Three business days before Clear shut down, Seibert said he got a "Father's Day" special with an advertising message that said, "Dad deserves 5-star service."

"Good thing I did not buy this as a gift," Seibert quipped.

Late Monday night, New York-based Verified Identity Pass Inc., the parent company (OOTC:KIDSQ) of Clear, sent out an e-mail to customers saying its doors were closing because it could not negotiate credit to continue operating.

Terminal A at the Mineta San Jose International Airport, home to American,

Southwest, Hawaiian and Mexicana airlines, was bustling Tuesday morning with long lines to pass into boarding areas. The turquoise Clear kiosks were unstaffed, its computer stations hung with simple copy-paper notes stating that Clear had "ceased operations" and that passengers should "please utilize regular security checkpoint lanes." Typically, Clear employees would escort their customers right to the head of the line. Two years ago, San Jose became the first airport on the West Coast to open a Clear lane.

David Vossbrink, spokesman for San Jose's airport, said 11,341 Clear customers used the airport. Last year, 9.7 million passengers passed through Mineta San Jose.

Airport management was busy determining how Clear would physically clear its equipment from the airport and how the company would sever its $300,000 annual rental agreement.

"All of us were surprised at the suddenness of this," Vossbrink said, the airport was alerted about 2:30 p.m. Monday.

Vossbrink was quick to add that he didn't think the company's shuttered doors would have any "major impact" in San Jose, especially since the airport is undergoing a major renovation with more security lines and "improved efficiency."

Getting any answers on Tuesday from the company were nearly impossible. Calls to headquarters either were abruptly cut off, or voice mail boxes were full. Reached on her cell, a woman who used to be the spokeswoman said she hadn't been with Clear for a couple of months and she had nothing to say. The company was founded in 2004 by Court TV creator Steve Brill and raised $44.4 million last year with funding from Lockheed Martin (NYSE:LMT) , GE Security, Lehman Bros., and other venture-capital firms, according to The Wall Street Journal. Other airports where Clear operated included New York's John F. Kennedy, Washington, D.C.'s Dulles, Denver, and Orlando.

Kevin Mitchell, chairman of the Business Travel Coalition in Pennsylvania, which represents corporate travel buyers, said while customers have no idea "what it all means and what to do next," there is a silver lining -- at least for Clear's competitors, such as the Florida-based Vigilant Solutions and Virginia-based FLO Card.

"Now it gives the registered traveler program a fresh start," he said. Citing congressional support, Mitchell said he hoped Clear's closure would end up forcing other airport clearance companies to take background checking more seriously, and do more thorough security checks instead of superficial ones. Critics complained Clear never supported deep background checks because the company feared it would be too expensive.

Vossbrink said Mineta San Jose would be open to the possibility of contracting with another firm.

Some Clear customers worry about the personal information they gave to the company.

"They have my iris scans and every single one of my fingerprints, my Social Security number," Mike Stark of San Jose, a business development manager for a packaging company, "They have absolutely everything to make sure you are not a security threat. Now that they are out of business, where is that information going?"

Contact Lisa Fernandez at lfernandez@mercurynews.com or 408-920-5002. Contact Sharon Noguchi at snoguchi@mercurynews.com or 408-271-3775.

Newstex ID: 35979273