SkyMall Files for Bankruptcy
The parent company of popular in-flight catalogue SkyMall filed for bankruptcy on January 22.
The company’s retailing business revenue in 2014 was down by over 50% from 2013, with the ever-increasing availability of Wi-Fi on flights cited as a major factor in the drop.
“With the increased use of electronic devices on places, fewer people browsed the SkyMall in-flight catalog,” Scott Wiley, CEO of Xhibit Corp., which acquired SkyMall in 2013, said in a statement.
More airlines providing Internet “resulted in additional competition from e-commerce retailers and additional competition for the attention of passengers, all of which further negatively impacted SkyMall’s catalog sales,” Wiley said.
According to court papers, Delta Air Lines had ended its partnership with SkyMall last November, and Southwest Airlines told the company in December that it would stop carrying the catalogue this year.
SkyMall was founded in 1990, in Phoenix, Arizona. The catalogue had an annual circulation of approximately 20 million copies in aircraft seatback pockets.
(Photo: Accura Media Group)