Why Are Elon Musk and Ryanair CEO Michael O'Leary Beefing? Here's What We Know

What began as a technical debate over in-flight internet has spiralled into one of the aviation industry's most colourful disputes. Elon Musk, the billionaire behind SpaceX and Tesla, and Michael O'Leary, Ryanair's outspoken chief executive, have traded barbs over the feasibility of installing Starlink satellite internet on Ryanair aircraft.

The clash, which started with concerns cost and fuel efficiency, quickly escalated into a war of words between two high-profile figures. With Musk threatening to buy Ryanair and O'Leary dismissing him as 'an idiot', the row has captured headlines far beyond the aviation sector, blending technology, economics and personality politics into a single high-altitude drama.

The Starlink Dispute

O'Leary said Ryanair had ruled out Starlink because the antennas required would add aerodynamic drag and increase fuel consumption. He explained that installing two antennas on each aircraft would create around 2% extra drag, significantly raising operating costs. According to O'Leary, the total annual cost would reach about £185 million (approximately $250 million), including an estimated £148 million (approximately $200 million) increase in fuel bills.

Despite rejecting the installation, O'Leary made clear that Ryanair did not question the technology itself. He said the airline had been in discussions with Starlink for roughly 12 months and described the system as effective. However, he stressed that Ryanair's low-cost model left little room for expenses that could not be passed on to most passengers.

Passenger Demand And Costs

O'Leary stated that Ryanair would have to charge passengers for Starlink access. He estimated that fewer than 5% of passengers would be willing to pay extra for internet on short-haul flights averaging around one hour and 15 minutes. This limited demand, he said, made the investment difficult to justify within the airline's business structure.

Ryanair has instead continued talks with other telecommunications providers. O'Leary confirmed discussions with companies including Amazon, which is developing Starlink rival Kuiper. He said any future onboard internet service would need to reduce costs rather than add to them.

The War Of Words

The technical disagreement soon turned personal after Musk accused O'Leary of being 'misinformed'. O'Leary responded on Irish radio by saying he would pay no attention to Musk and called him 'an idiot'. Musk fired back on his social media platform X, referring to O'Leary as an 'utter idiot' and an 'imbecile'.

Musk then suggested buying the airline, posting a poll asking whether he should purchase Ryanair and put someone named Ryan in charge. The poll showed 76.5% of respondents voting in favour.

Ownership Limits And Publicity

O'Leary responded by pointing out that non-European citizens cannot own a majority stake in a European airline. Musk was born in South Africa and resides in the United States, making such a takeover impossible under current rules. O'Leary added that if Musk wanted to invest, Ryanair would consider it a good investment, comparing it favourably with Musk's returns from X.

Musk bought X in 2022 for about £33 billion (approximately $44 billion). O'Leary, known for trolling critics, thanked Musk for what he called additional publicity. Ryanair even launched a seat sale using promotional material featuring a caricature of Musk.

Wider Industry Impact

Starlink has become a major player in in-flight connectivity, with more than two dozen airlines worldwide either signing deals or announcing plans to use the service. Carriers include British Airways, Korean Air and United Airlines, as well as budget airline Vueling. Some airlines, such as Qatar Airways, WestJet and Hawaiian Airlines, have already rolled out the service, with Hawaiian debuting it in February 2024.