A public dispute has unfolded between Elon Musk and Ryanair CEO Michael O'Leary, primarily centered on Ryanair's rejection of implementing Musk's Starlink in-flight Wi-Fi technology. The disagreement escalated to include Musk suggesting the acquisition of Ryanair and the termination of O'Leary, a proposal which O'Leary subsequently dismissed citing European Union ownership regulations. Both executives have engaged in public exchanges on the social media platform X, characterized by mutual criticism and name-calling.
Origins of the Dispute: Starlink Rejection
The public exchange began around January 14, following Ryanair's announcement that it would not install Starlink satellite Wi-Fi on its aircraft. Michael O'Leary cited several reasons for this decision:
- Cost Estimates: O'Leary estimated the annual cost of implementing the Starlink system across Ryanair's fleet would be between $200 million and $250 million. This figure included installation fees for two antennas per aircraft fuselage and an additional 2% aerodynamic drag, which he stated would increase the airline's fuel bill by approximately $200 million annually. O'Leary also estimated this would equate to about an extra dollar per passenger.
- Passenger Demand: The airline's internal assessments suggested that less than 10%, and in some instances, less than 5% of passengers, would be willing to pay for internet access on its short-haul flights, which average 75 minutes. This contrasts with Starlink's reported claim of a 90% willingness to pay among passengers.
- Operational Impact: O'Leary explained that the increased fuel costs due to aerodynamic drag from the Starlink hardware made the system economically unviable for the budget airline, as it believed it could not recover these expenses by charging passengers.
Ryanair is reportedly exploring other onboard internet options with telecommunications providers, including Amazon's Kuiper, prioritizing solutions that aim to lower costs. While Ryanair declined Starlink, other airlines such as Lufthansa, Qatar Airways, and United Airlines have announced or implemented the technology. Lufthansa, for example, plans to install Starlink for complimentary Wi-Fi on its planes.
Public Exchange and Mutual Criticism
The disagreement between Musk and O'Leary has involved public remarks and posts on X. O'Leary initially stated that Musk lacked understanding of flight aerodynamics, calling him "an idiot." Musk responded on X, describing O'Leary as "misinformed," an "utter idiot," and an "imbecile," and questioned Ryanair's ability to accurately measure fuel consumption differences. Both executives are known for making provocative public statements.
Acquisition Proposal and Rejection
During the public exchange, Elon Musk proposed the possibility of acquiring Ryanair, inquiring about the cost and suggesting the installation of "someone named Ryan" in charge. Musk also polled his followers on X about the idea of buying Ryanair, with 76.5% voting in favor.
Michael O'Leary rejected the acquisition suggestion, referencing EU regulations that stipulate airlines based in the EU must have majority ownership by individuals from the EU, Switzerland, Norway, Iceland, or Liechtenstein. As a non-European Union citizen, Musk would be restricted from holding a majority stake. O'Leary stated he would welcome Musk's investment, suggesting it would be a more financially sound investment than Musk's current returns on X.
Marketing and Public Impact
Ryanair utilized the public exchange for marketing purposes. Its official X account responded to Musk's proposals by stating, "Perhaps Musk needs a break??" The airline subsequently launched a "Great Idiots seat sale," also referred to as a "Big Idiot Seat Sale," which specifically referenced Musk and other individuals on X, and featured promotional material with a caricature of Musk. O'Leary stated that the ongoing public exchange with Musk had positively impacted Ryanair's ticket sales and thanked Musk for the additional publicity generated. Ryanair's social media presence is recognized for its direct and often provocative posts. O'Leary also commented on X generally, describing the platform as a "cesspit" and criticizing recent controversies involving its AI chatbot Grok.
O'Leary is scheduled to hold a press conference in Dublin to address Musk's recent statements.