SkyMall today filed for bankruptcy protection listing American, Delta, and US Airways as its largest unsecured creditors. Total liabilities were listed at $12 million with between $1-$10 million in assets. The company reported revenue of $33.7 million in 2013, but only $15.8 million for the 9 months ending September 28, 2014. The Financial Times reports on the CEO’s statement:
“We are extremely disappointed in this result and are hopeful that SkyMall and the iconic ‘SkyMall’ brand find a home to continue to operate,” acting Chief Executive Scott Wiley said in a statement Friday. Mr. Wiley cited a “crowded, rapidly evolving and intensely competitive” retail environment as the reason for the quarterly publication’s recent struggles. “With the increased use of electronic devices on planes, fewer people browsed the SkyMall in-flight catalog,” he said.
Mr. Wiley cited a “crowded, rapidly evolving and intensely competitive” retail environment as the reason for the quarterly publication’s recent struggles. “With the increased use of electronic devices on planes, fewer people browsed the SkyMall in-flight catalog,” he said. Delta Air Lines ended its contract with SkyMall in November, court papers said, and Southwest Airlines informed the company in December that it would stop carrying the catalog later this year. “We saw a decline in customer use of the publication,” a Delta spokesman said. The increase in the number of airlines providing 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,” Mr. Wiley said.
Check out The “inside” story behind the Delta 25,000 points SkyMall deal…I got in on that one 6 times!
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Leafing through an issue of SkyMall was a vicarious way for a Canadian to discover how decadent America’s consumer society had become. The range of utterly useless “Can live without it!” products never ceased to amaze me. It offered forbidden fruit that we could never order (unless we had an American friend who would take delivery and send the item across the border), thank goodness.
I think this clearly reflects the angst within the middle class whose incomes have remained stagnant and thus can no longer afford such “little” (or bigger) extravagances.
[…] that Cathay individually wraps the magazines and safety cards (everyone remembers touching a sticky SkyMall magazine and immediately returning it to the seat pocket, right? Or is that just […]