Uncategorized

RT A SKY-HIGH CLASH — ELON MUSK VS. RYANAIR’S CEO IGNITES A WAR OVER SATELLITE INTERNET COSTS

The war of words over the cost of installing Starlink satellite internet on aircraft has seen Elon Musk and Ryanair CEO Michael O’Leary trade insults.

“He’s an idiot!” — that was how billionaire Ryanair CEO Michael O’Leary described Elon Musk. Almost immediately, the Tesla boss fired back, calling O’Leary a “complete idiot” and even publicly calling for his dismissal, despite the fact that O’Leary has led Europe’s largest low-cost airline for three decades.

According to Business Insider (BI), the clash between Starlink and Ryanair is more than just a heated exchange of words — it is a case study in how businesses define and price value.

Who is right?

The dispute began when Starlink, SpaceX’s satellite internet service, started making inroads with major airlines. Recently, Lufthansa (Germany) and Scandinavian Airlines officially rolled out Starlink on their flights. Michael O’Leary, however, a man famous for his strict “no-frills” philosophy, was far from impressed.

Speaking to Reuters, the Ryanair CEO was blunt:
“We don’t believe passengers are willing to pay for WiFi just to use it on an average one-hour flight.”

Elon Musk quickly hit back:
“Ryanair will lose customers to airlines that have internet.”

So why is O’Leary so determined to reject a technology that appears to be an industry trend? The answer lies in the numbers.

Speaking on Irish radio, the Ryanair boss said installing Starlink would cost the airline between $200 million and $250 million per year.

“In other words, every passenger would have to pay about $1 extra. The reality is that we can’t afford that,” O’Leary said.

He firmly believes:
“If internet is free, passengers will use it. But they won’t pay even €1 for it.”

The clash escalated when O’Leary called Musk “an idiot,” while acknowledging that Musk is extremely wealthy. Musk did not hold back either, calling O’Leary a “complete idiot” and demanding:
“Fire him!”

Technical battle

The argument didn’t stop at service costs. The two sides also clashed over technical details. O’Leary argued that installing antennas on aircraft would increase weight and drag, leading to a 2% rise in fuel consumption.

Starlink’s Vice President of Engineering, Michael Nicolls, quickly countered with data: SpaceX’s analysis of the Boeing 737-800 — Ryanair’s main aircraft type — showed fuel consumption increasing by just 0.3%.

Elon Musk went even further, adding:
“There’s definitely a way to get that number below 0.1%.”

A tale of two models

BI notes that while U.S. low-cost airlines are struggling and gradually adding premium services to stay afloat, Ryanair under O’Leary remains highly profitable.

Latest financial figures show Ryanair’s net profit reaching €1.72 billion, a striking 20% increase year-on-year. In stark contrast, U.S. rival Southwest Airlines reported a nearly 20% decline, with profits falling to just $54 million.

This highlights how Ryanair’s model — ultra-low fares (starting from €15), fast aircraft turnaround times, and ruthless elimination of unnecessary amenities — continues to work exceptionally well in Europe.

For O’Leary, adding Starlink is like installing luxury leather seats on a budget bus: it doesn’t make the vehicle go faster, but it certainly makes the ticket more expensive.

Michael O’Leary has led Ryanair since 1994, owns 4% of the company, and is one of Ireland’s wealthiest individuals. He has no intention of retiring early like Warren Buffett — but also no intention of abandoning his core business principles just because of pressure from Elon Musk.

This clash reveals a fascinating truth about business: the most advanced technology is not always the right choice. For a company whose mission is rock-bottom prices like Ryanair, every cent saved is a competitive weapon. For Elon Musk, Starlink is not just internet — it is a new standard he wants to impose across the entire aviation industry.

So who is right, and who is wrong?
Perhaps the wallets of Ryanair’s 206 million passengers each year will provide the most accurate answer.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button