TLDR
- Ryanair bookings increased 2-3% over five days after CEO Michael O’Leary’s public dispute with Elon Musk generated millions of website visits.
- O’Leary declined Starlink internet for Ryanair’s fleet, citing €100-200 million in annual fuel costs from antenna drag and installation expenses.
- Elon Musk called O’Leary “an utter idiot” and floated buying Ryanair to fire him, but EU laws prevent foreign majority ownership of European airlines.
- O’Leary welcomed Musk to invest in Ryanair as a public company and suggested the airline offers better returns than Musk’s X purchase.
- Ryanair stock rose 2.83% during the week-long feud, closing Wednesday at $70.45 with a 1.37% gain and 3.89% overnight jump.
Ryanair Holdings CEO Michael O’Leary addressed his feud with Elon Musk during a Wednesday press conference in Dublin. O’Leary said the public confrontation provided valuable marketing exposure for the budget carrier.
The airline launched a promotional “great idiots” seat sale on Tuesday that attracted three to four million website views. O’Leary reported bookings rose between 2% and 3% in the five-day period following the start of the dispute.
O’Leary offered Musk a free flight to express gratitude for what he called “wonderful” publicity. The CEO said the Tesla founder’s repeated criticism on social media drove traffic to Ryanair’s website and boosted sales.
The conflict began when O’Leary rejected Starlink satellite internet for Ryanair’s fleet of more than 600 aircraft. Cost concerns and technical issues led to the decision after roughly 12 months of negotiations.
Fuel Costs Led to Starlink Rejection
O’Leary explained that installing Starlink equipment would create antenna drag on aircraft. This drag would increase fuel consumption and add €100 to €200 million to the airline’s annual fuel expenses.
The two companies also disagreed about passenger demand for in-flight Wi-Fi services. Starlink estimated 90% of Ryanair passengers would pay for internet access while the airline’s internal data suggested less than 10% would purchase it.
O’Leary calculated the total annual cost of implementing Starlink at approximately $250 million. The airline decided this expense did not justify the service based on projected customer usage rates.
After the rejection, Musk labeled O’Leary “an utter idiot” on his social media platform X. O’Leary had previously called Musk “an idiot” during discussions about the Starlink partnership.
Musk Proposes Ryanair Acquisition
Musk responded to the Starlink rejection by suggesting he could purchase Ryanair on January 20. He posted a poll on X asking users if he should buy the airline and replace O’Leary with someone named “Ryan.”
Approximately 75% of poll respondents supported Musk’s acquisition proposal. Musk said he would fire O’Leary if the takeover proceeded.
O’Leary addressed the takeover speculation by citing European Union airline ownership regulations. EU rules prohibit non-European citizens from holding majority control of airlines based in member countries.
The CEO clarified that Musk can purchase Ryanair shares as a public investor. However, foreign ownership restrictions make a complete takeover legally impossible under current regulations.
O’Leary compared potential returns on Ryanair stock favorably against Musk’s $44 billion acquisition of X. He suggested investing in the Irish airline would deliver superior financial performance.
Ryanair shares gained 2.83% over the week as news of the Musk dispute spread. The stock finished Wednesday trading at $70.45, up 1.37% for the session.
Overnight trading pushed Ryanair shares 3.89% higher after O’Leary’s press conference. The stock has climbed more than 58% over the past 12 months.
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