The company that produces SkyMall, the in-flight shopping catalog that entices airline travelers with offers for iFetch ball launchers for dogs and mini clap-on alarm clocks, is bracing for a hard financial landing.
SkyMall parent firm Xhibit Corp filed for federal bankruptcy court protection in Phoenix on Jan. 23, citing a funding crisis and seeking a court-supervised sale of their assets.
“With the increased use of electronic devices on planes, fewer people browsed the SkyMall in-flight catalog,” wrote Xhibit Chief Financial Officer Scott Wiley. “The substantial increase in the number of air carriers which provide Internet access, and the U.S. Federal Aviation Administration’s recent decision to allow the use of electronic devices during take-off and landing, 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.”
SkyMall generated approximately $33.7 million in 2012 revenue, and that dwindled to $15.8 million for the nine months that ended Sept. 28.
