Ryanair CEO Michael O’Leary on January 21 dismissed Elon Musk’s idea of purchasing the budget airline, brushing off insults as a public feud escalated over whether to install Starlink satellite Wi-Fi on aircraft. O’Leary told an Irish radio station that Musk was “an idiot” for suggesting the technology would be viable for Ryanair’s operations. Musk fired back on X, calling O’Leary an “utter idiot” and an “imbecile,” and polled his followers on whether he should buy the airline—with 76.5% responding yes.

The dispute underscores the economic challenges facing budget airlines as satellite internet becomes increasingly central to in-flight connectivity. Ryanair’s assessment—that fuel and equipment costs outweigh passenger demand—exemplifies the cost-benefit analysis driving airline decisions on satellite internet adoption.

The economics of satellite Wi-Fi in the air

O’Leary said Ryanair had been in discussions with Starlink for about 12 months before determining the technology would not work for the airline’s business model. Installing two antennas on each aircraft fuselage would cost approximately $250 million annually, he said, including the expense of the equipment itself and modifications to the planes.

The extra 2 percent of aerodynamic drag from the antenna system would add another $200 million to Ryanair’s fuel bill each year—a significant expense for a budget airline operating on thin margins.

“We like the Starlink system. It is a terrific system. It works very well,” O’Leary said. But he questioned the passenger demand. On Ryanair’s short-haul flights, which average about one hour and 15 minutes, he estimated that fewer than 5 percent of passengers would be willing to pay extra for satellite internet.

“The most we’d expect to charge is a few extra euros for an extra service on a short-haul flight,” O’Leary said. The revenue would not cover the infrastructure and fuel costs.

Despite ruling out Starlink, O’Leary said Ryanair remained open to partnerships that would reduce costs. The airline was exploring other providers, including Amazon’s Kuiper satellite internet service. “But only in a way where it will lower our costs,” he emphasized.

Starlink has become a major in-flight connectivity provider in a remarkably short timeframe. More than two dozen airlines worldwide have signed contracts or announced plans to deploy the satellite network, spanning North America, Europe, the Middle East, and Asia-Pacific. The list includes major international carriers like British Airways, Korean Air, and United Airlines, as well as other budget airlines including Vueling.

Several carriers have already begun operating Starlink on active routes. Qatar Airways, Canadian carrier WestJet, and Hawaiian Airlines have all rolled out the service. Hawaiian Airlines became the first major carrier to debut Starlink internet on commercial flights in February 2024.

Regulatory barriers to Musk’s acquisition

O’Leary’s dismissal of Musk’s buyout offer rested partly on European Union law. Non-European citizens cannot own a majority stake in a European airline under current regulations. Musk, born in South Africa and now based in the United States, would be barred from taking control of Ryanair.

That legal reality did not prevent O’Leary from suggesting Musk could benefit from owning a stake in the company as an investor. Ryanair would welcome Musk’s capital, he said, especially given his financial experience. “Certainly a significantly better investment than the financial returns he’s earning on X,” O’Leary said, referring to Musk’s 2022 acquisition of the social media platform for $44 billion.

The public spat

O’Leary, who has built his reputation on contentious exchanges with critics, dismissed the personal attacks from Musk without visible irritation. “All I would say to Elon Musk is he would have to join the back of a very, very, very, very long queue of people” who have insulted him, O’Leary said, adding that “my four teenage children” were among them.

Ryanair seized on the conflict as a marketing opportunity, launching a promotional seat sale featuring marketing materials with a caricature of Musk.

Criticism of X and Grok

O’Leary also criticized Musk’s X platform, calling it “a cesspit.” He cited recent controversies around Musk’s Grok AI chatbot, which has been used on the platform to generate nonconsensual deepfake images.

“The most recent controversy with, you know, undressing children or undressing women is frankly offensive,” O’Leary said, raising broader questions about content moderation and the governance of artificial intelligence tools deployed at scale.