Now they’re closing SkyMall?!
WHEN WILL THESE NASA CUTBACKS STOP?
— SarcasticRover (@SarcasticRover) January 23, 2015
Frankly, Skymall’s bankruptcy is our fault, for just pointing and laughing and never actually ordering this: pic.twitter.com/zVF4eazCer
— Josh Barro (@jbarro) January 23, 2015
The company behind SkyMall, the take-it-home-with-you in-flight catalogue that has facilitated the daydreaming of countless travelers trapped inside airplanes with nothing to do but stare at the headrest of the seat in front of them, has filed for Chapter 11 bankruptcy, the Wall Street Journal reported Friday.
SkyMall LLC and its parent company Xhibit Corp. were unable to adapt to a “crowded, rapidly evolving and intensely competitive” retail environment, according to bankruptcy court papers.
A staple in most American carrier airplanes since 1990, SkyMall benefited from their complete monopoly over airline passengers before wifi and portable electronics were permissible in-flight. The SkyMall business had revenue of about $33.7 million in 2013, but only $15.8 million for the first nine months of 2014.
The prevalence of in-flight wifi, whether complementary or at a charge, is on the rise. In 2013, one study by an air travel data firm estimated that 38 percent of domestic flights offer wifi. But efforts to increase the number of flights with wifi may be slow, with some firms estimating wireless connectivity reaching only 50 percent of airplanes through 2022.
Electronics permissible to use on airplanes are expanding as well. The Federal Aviation Administration announced its most recent policy, which allows passengers to use portable electronics such as e-readers, smartphones and games during takeoffs, landings and taxiing since Oct. 31, 2013. Before then, electronics were only permissible while the plane was at cruising altitude.
My 4-yo calls Skymall “The silly-stuff book” and asks me to bring one home every time I fly.
— David Freddoso (@freddoso) January 23, 2015
“With the increased use of electronic devices on planes, fewer people browsed the SkyMall in-flight catalog,” acting chief executive of Xhibit Corp Wiley said in court papers.
Increased Internet access “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,” he added.
SkyMall’s offerings varied. From garden Yeti sculptures and luggage scooters to sitting up-right sleep aids and wine glass holder lanyards, the in-flight catalog couldn’t compete with newer retailers and sources of distraction.
The company listed assets between $1 million and $10 million and liabilities ranging from $10 million to $50 million, according to WSJ.
I assume Skymall is paying $2k per hour for the Ultimate Designer Hands-Free Bankruptcy Lawyer with Pet-Feeder Attachment
— Blasphemous Hat (@Popehat) January 23, 2015
