By Calvin Biesecker
Verified Identity Pass on Monday ceased operations of its Clear Registered Traveler (RT) program after failing to negotiate a new line of credit with its senior creditor to continue operations.
Clear was the largest of the private RT programs, winning the right to have its preferred passenger lanes in nearly all of the 21 airports throughout the country that participate in the program. Clear’s lanes were no longer available as of Tuesday, Verified Identity said in a note to its members on Monday.
Investors in Verified Identity Pass include General Electric [GE], Lockheed Martin [LMT], and several equity firms.
Clear had over 165,000 members although their are other RT providers, including FLO Corp. FLO said this week that it was working with other participants in the program and with the Transportation Security Administration (TSA) to understand the implications of Clear’s termination.
The problem for the RT program in possibly drawing more members is that it never realized its promise of being able to offer them conveniences at aviation security checkpoints such as not having to remove their shoes or leave their laptop computers inside a case. That’s because TSA maintained that even if someone had gone through a limited background check to become an RT member they could still be a “clean skin terrorist.”
Instead, RT providers have tried to drum up business by offering members various perks such as better parking accommodations at airports or discounts at shops, essentially competing with programs run by airlines for elite or frequent flyers.
The National Business Travelers Association on Tuesday expressed its disappointment with the status of the RT program.
“As the program’s primary provider ceases operation, we urge TSA, in cooperation with U.S. carriers, to keep the program alive and make certain it becomes a true risk- management tool for secure and efficient air travel,” NBTA said.
The NBTA also asked Verified Identity to address the security of personal data of Clear members. Verified Identity said applicant and member data is secured in accordance with TSA standards and that it would take appropriate steps to delete the information. The company said it could not issue refunds to members presently due to its financial condition.