The recent exchange between Ryanair’s chief executive, Michael O’Leary, and Elon Musk has generated significant attention, following O’Leary’s dismissal of the possibility of installing SpaceX’s Starlink internet on Ryanair planes. O’Leary described the cost of the required aerial antennas as unaffordable, sparking what many are calling a “bizarre feud.” Musk responded with an audacious suggestion: he might consider purchasing the airline, partly to oust O’Leary, whom he referred to as an “utter idiot.”
This unusual spat quickly gained traction on social media, with Musk even conducting a poll on X (formerly Twitter) titled “Buy Ryanair and restore Ryan as their rightful ruler.” The poll alludes to Tony Ryan, the airline’s founder, who passed away in 2007. O’Leary did not hold back in his criticism, labeling X as a “cesspit” and asserting that Musk knows “zero” about aviation.
The debate intensified around the proposed installation of the Starlink system. O’Leary claims that the antennas would create a “2% fuel drag,” adding between $200 million and $250 million annually to Ryanair’s fuel bill, which stands at approximately $5 billion per year. He emphasized that the airline could not recoup these additional costs, making the installation economically unfeasible.
While Musk’s suggestion of a buyout might appear to be mere “idle talk,” it is worth noting that he has previously acted on similar provocations, as seen with Twitter in 2022. However, Ryanair’s stock has shown little movement in response to this public discourse, indicating that investors may not be taking Musk’s comments seriously. According to Peter Campbell in the Financial Times, raising Ryanair’s market value, which is currently estimated at $35 billion, would pose a significant challenge even for Musk.
Moreover, any potential acquisition would face regulatory hurdles, particularly from European Union (EU) authorities. Under EU regulations, airlines operating within the bloc must be majority owned by European nationals, complicating Musk’s hypothetical plans.
As the feud continues to unfold, it remains to be seen whether Musk’s provocative comments will lead to any substantive changes in the airline industry or remain a momentary spectacle in the public eye. One thing is clear: the interplay between two of the business world’s most provocative figures has captured the imagination of the public, highlighting the often theatrical nature of modern corporate rivalries.
