Playing Catch-Up In the Fast Lane

Chantilly Firm Takes On Deep Pockets In the Race to Lead Airport Security

FLO, a small Chantilly start-up, saw opportunity in speeding frustrated travelers through airport security.

Pre-screen fliers with government background checks and give them smart cards imprinted with their personal information and iris and fingerprint scans. Create separate fast-pass security lanes, lined with kiosks that verify identities, then send these fliers past the long lines directly to X-ray machines and metal detectors.

Only one problem: Another company got there first.

And it wasn't just another start-up. It was New York media mogul Steven Brill's newest business venture.

Brill's Verified Identity Pass is the dominant player in the new registered traveler industry. The company, which has been enrolling members into its Clear program since 2005, has signed up more than 175,000 travelers nationwide for its $128 annual membership. It has advertised its new card in magazines and newspapers. It staffs kiosks in many major airports to register new members.

FLO, which stands for fast lane option, launched last year after separating from Saflink, now Identiphi. The company says it has fewer than 5,000 members. With limited funds, FLO has been unable to advertise or staff airport enrollment booths.

So the start-up has set its sights on the itinerant businessmen, the core demographic signing up for this fast-pass service. FLO saves money by forgoing advertising and instead sets up registration booths at industry conventions, knowing its prime target will be in attendance.

The company also is rolling portable registration kiosks into offices, signing up employees during their lunch hours and breaks, and enticing them with discounted cards. FLO has visited firms such as Washington's Dickstein Shapiro and Dean & Co. in Vienna.

"Our attorneys travel constantly," said Sharon O'Meara, Dickstein's chief administrative officer, who helped bring FLO, which is also a client, into Dickstein's office. "They're business-traveler savvy. They know what to do when they go through security. You don't want to get behind a family traveling with children and strollers." About 50 people enrolled at Dickstein.

Much like a corporate frequent-flier program, FLO cards have added benefits. For the basic membership fee of $100 a year, benefits include discounts on golf club rentals and medical assistance. For $200 a year, members get additional perks such as emergency cash transfer assistance and concierge help with golf reservations.

"We deliver more value with our bundled services," said Luke Thomas, executive vice president of FLO. "You get more value at a better price point."

It's logical that FLO's business model mimics a corporate rewards program, said Robert Mann, an airline industry analyst. Under Transportation Security Administration mandate, all registered travelers must be able to move through interoperable fast-pass lanes, so one card doesn't have a speed advantage.