Serious Bid Or Just Joking? Elon Musk Threatens To Buy Ryanair

A public spat is ongoing between Elon Musk and Ryanair CEO Michael O’Leary. The feud began over comments made by O’Leary, one of the airline industry’s most outspoken executives, over his airline’s decision to pass on SpaceX’s Starlink Wi-Fi system. Elon Musk, himself an outspoken individual, has countered O’Leary’s points, and the two have since gone back and forth in interviews as well as on social media.

In his latest comments, Elon Musk has explicitly suggested that he may purchase Ryanair and then fire Michael O’Leary. As the world’s richest person, Musk certainly has the ability to buy the carrier if he wants, and it wouldn’t be his first time outright buying a large company. At the same time, Musk is known for making controversial statements with the intent to create headlines, and is also making statements such as “Buy Ryan Air and restore Ryan as their rightful ruler”. How much substance is behind these threats?

The Background Of This Public Feud

Ryanair is the world’s largest and most successful ultra-low-cost carrier. The company was founded over 40 years ago in Ireland, and it also operates subsidiaries based in the UK, Malta, and Poland. Michael O’Leary has been the company’s CEO since 1994, and Ryanair has become Europe’s largest airline under his leadership. Starlink, meanwhile, is a subsidiary of Elon Musk’s SpaceX, and among other services, sells Wi-Fi systems to commercial airlines.

Starlink’s Wi-Fi system has been praised for its speed and capability, and is often regarded as being the best Wi-Fi system in the airline industry. Furthermore, airlines are offering Starlink for free (though often requiring you to sign up for their complimentary loyalty programs to access it), and it’s being offered by several airlines worldwide, including Emirates, Qatar Airways, airBaltic, Air France, Air New Zealand, United Airlines, and more.

Ryanair, however, doesn’t want it. In a recent interview, Michael O’Leary stated that installing Starlink results in a 2% fuel burn penalty due to the added weight and drag, while adding that his customers would not be willing to pay for the service. It’s these statements that have drawn the attention of Elon Musk and led to the two trading insults.

The Facts Of This Conflict

Michael O’Leary and Elon Musk have called each other idiots. In another interview, O’Leary has stated that Musk has virtually no knowledge of flights or aerodynamic drag, while also stating that installing Starlink would cost the carrier hundreds of millions per year. In response, Elon Musk has suggested that O’Leary should be fired and that he should buy the airline, continuing to reiterate his desire to own Ryanair in recent days.

The reality, however, is that no matter the validity of O’Leary’s claims, his statements cast a negative image on Starlink. Michael Nichols, Vice President of Starlink Engineering at SpaceX, has also addressed O’Leary’s comments on X with a more detailed analysis, claiming that Starlink would only cause a 0.3% fuel burn penalty on a Boeing 737-800. Elon Musk, in his far more blunt and outspoken style, is attempting to discredit Michael O’Leary’s negative statements about his company.

On the flip side, while Michael O’Leary himself is a controversial figure, he’s led Ryanair to unprecedented success over his three decades as the company’s CEO. The business model works because the carrier cuts out unnecessary amenities, focusing solely on price, schedule, and network. Onboard Wi-Fi, especially a free service like Starlink’s, doesn’t fit with the carrier’s business model.

Will Elon Musk Purchase Ryanair

Betting markets are now mulling the issue. Currently, traders believe that the chances of Elon Musk buying Ryanair are less than 10%. Elon Musk is known for making controversial, occasionally unsubstantiated statements, and when Musk also makes comments about placing an individual named Ryan as Michael O’Leary’s successor, it indicates that he’s not serious about making an offer.

Ryanair is as successful as ever, so any takeover of the airline would require Elon Musk to pay a premium over its current overall worth. Given that Michael O’Leary owns roughly four percent of Ryanair, Musk purchasing the company would actually be beneficial for him since it would greatly increase his net worth. But unless Elon Musk makes a more substantiated move to acquire Ryanair, his comments should not be taken at face value.