Clear founder Steven Brill shows off a card last summer that passengers could use to expedite their passage through airport security. Brill left his job in February when a group of investors took control of the company. (Scott Sommerdorf / Tribune file photo)

The company that ran Clear's expedited security service program at Salt Lake City's airport has left 2,395 local frequent fliers with no way to speed through security lanes -- and no way to recover their $199 annual fees.

Clear's parent company, Verified Identity Pass Inc., went out of business at airports across the country at midnight Monday after it was unable to negotiate an agreement with its senior creditor that would have kept it going.

"At the present time, because of its financial condition, Verified Identity Pass cannot issue refunds," the company said on its Web site. Verified had a quarter-million customers who paid up to three years in advance and turned over detailed personal information in exchange for breezing through short security lines to their gates.

Speculation that rival FLO Corp. will take over Clear's operations or expand into the void left by the company could not be substantiated Tuesday, even though FLO's Web site includes Salt Lake City International Airport on a map of airports it serves.

"We have no indication from FLO or from Clear that FLO will be taking over their contract," said airport spokeswoman Barbara Gann, adding that the speedier pay-as-you-go security lanes are shut down for now.

Gann said 35,770 Clear members were processed through Terminal One and Terminal Two security lanes from June 2008 to March 2009.

"I thought that was an interesting amount. This was a very popular niche

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service for frequent fliers," Gann said.

A FLO spokesman did not return telephone calls seeking comment.

But on its Web site, FLO said it is talking to "other participants in the industry, as well as the Transportation Security Administration ... to formulate a plan for the advancement of the program."

Clear originated with a program set up by the Transportation Security Administration called Registered Traveler. It was instituted when security lines swelled after the Sept. 11, 2001, terrorist attacks.

On Tuesday, TSA representatives refused to discuss Clear's decision to pull out of 18 U.S. airports.

"TSA has no comment on Verified Identity Pass' announcement. The Clear program was a market-driven, private-sector venture, offered in partnership with airports and airlines in certain locations," TSA spokesman Nico Melendez said in an e-mail.

Clear received its contract to operate at Salt Lake International in June 2008.

The company was founded in 2003 by Steven Brill, the businessman behind media ventures such as CourtTV and American Lawyer magazine. Brill left the company in February when a group of investors took control of the company.

"I can only speculate about the causes of the company's demise," he said. "What I do know for sure, however, is that the need for intelligent risk management hasn't diminished and that programs like Clear should have a role in our future."

 

The Associated Press contributed to this story.