Clear, aka the "Registered Traveller" program,
is no more. Between airlines that allowed an increasing number of "elite" fliers to jump the security queues, and the TSA itself getting better at making the lines move, the company's value proposition rapidly eroded. Did competition from the registered traveler program encourage these developments? I guess we'll find out soon.
I think my favorite Clear bit was that they had a relatively significant installation at the Indianapolis Airport. Indy used to have a relatively small airport - and it was always basically empty. I never waited more than about 5 minutes to get through security.
Of course, this meant that Indy needed a much newer, larger and fantastically expensive airport terminal to replace the older one (my understanding is that someone did projections in 1979 and figured that things would be very different in 2008 than they turned out to be). This airport is, of course even emptier. Again, never had to wait more than 3-5 minutes to get through security. And right next to security is Clear.
It was like setting up a dollar store next to an installation where the same stuff is given away for free. And it was utterly empty.
Is it regulatory risk when your existence depends entirely on the regulations? I'd say the term refers better to businesses getting squeezed out by unnecessary regulation than ones who depend on it and fail when things are less onerous.
If they have to scurry about to find monthly records about passenger aircraft, and who is a terrorist on the terrorist watch list (Ted Kennedy?), one wonders how they would do in a registered traveller database anyway.
Risk? What about the risk of Steven Brill getting sued for fraud?
My favorite Clear bit (well, aside from them storing their client's personal information on a laptop in the clear) was when one of their employees came up to my husband in the security line and asked him to allow a woman to cut in line. My husband asked "why?" and the woman said "because I pay $350 a year to get preferred access." Well, no you don't, actually. You pay $350/year to bypass the people checking IDs but you don't get preferred access to the actual security line, which is why your minion has to ask permission for you to cut in line. My husband was particularly incensed that they targeted the first man in line, skipping me and the woman ahead of me.
Astra, they knew no woman would agree to that. A man might, out of fear of appearing ungentlemanly.
I was a clear member, but being active duty military I was offered the membership for free. That being said, I was surprised to receive an email at 9:30 last night saying that in 90 minutes (11:00 p.m. PST) Clear was going to cease operations. I checked their website and it says that they are not offering refunds.
My question is why is this ok? I understand that firms have an obligation to their creditors, but they also have an obligation to their employees and customers. It reminds me of the shutdown of ATA airlines, which closed business and left many travelers stranded. While no one should be asked, out of the goodness of their heart, to subsidize the operations of a failing business, customers and employees are entitled to be treated fairly.
My question is why is this ok? I understand that firms have an obligation to their creditors, but they also have an obligation to their employees and customers.
Customers and employees are creditors, so they'll be treated just like the other creditors, i.e., get screwed.
I was under the understanding that your obligation to employees and customers, in most cases, supersede those of your bond holders.
Finally, even if that is not the case, there's no excuse for giving people only 90 minutes notice.