Ryanair CEO O’Leary Rejects Elon Musk’s Airline Acquisition Proposal

Ryanair’s CEO, Michael O’Leary, has publicly dismissed Elon Musk’s suggestion to acquire the budget airline. This exchange unfolded as a result of a disagreement regarding the potential installation of Starlink systems on Ryanair planes.

Details on the Disagreement

The tensions between O’Leary and Musk intensified when Musk accused O’Leary of being “misinformed.” In response, O’Leary referred to Musk as an “idiot” during an interview on Irish radio. Musk retaliated on his social media platform, X, labeling O’Leary an “utter idiot” and an “imbecile.”

Ownership and Investment Rules

O’Leary clarified that due to regulations, non-European citizens are not permitted to hold a majority stake in European airlines. Musk, who was born in South Africa and resides in the U.S., was advised that while he cannot own a major share, investing in Ryanair could still be a worthwhile venture.

Financial Implications of Starlink

The conversation also revealed Ryanair’s position on using Starlink. O’Leary disclosed that the airline had deliberated on this technology for about a year. However, he stated that implementation would incur significant costs, estimating around $250 million annually for the system.

• Costs involved:
  • Installation of two antennas per aircraft
  • An increase of 2% in aerodynamic drag, raising fuel expenses by approximately $200 million
• Market demand:
  • Less than 5% of Ryanair’s passengers might opt for Starlink service

Alternative Solutions

O’Leary revealed that Ryanair continues discussions with other telecom providers, including Amazon and its upcoming Kuiper service. The goal remains to introduce internet services on flights while minimizing costs.

Publicity and Promotional Moves

The public feud has inadvertently benefited Ryanair. O’Leary thanked Musk for the publicity, leveraging the situation to launch a promotional seat sale featuring caricatures of the billionaire. He humorously mentioned that Musk’s insults were just another addition to a long list, which includes jabs from his own children.

About O’Leary’s Concerns

O’Leary did not shy away from addressing concerns related to Musk’s involvement with AI technologies. Criticizing Musk’s chatbot Grok, he described social media as “a cesspit” that facilitates problematic content.