“‘He’s an Absolute Fool’: Elon Musk Calls for Ryanair CEO’s Ouster Over Refusal to Add $1 Passenger Fee”

A heated debate over the cost of installing Starlink satellite internet on flights has sparked a war of words between Elon Musk and Ryanair CEO Michael O’Leary.

“He’s an idiot!” declared Michael O’Leary, the billionaire CEO of Ryanair, referring to Elon Musk. Musk swiftly retaliated, labeling O’Leary a “complete fool” and calling for his dismissal after three decades at the helm of Europe’s leading low-cost airline.

According to Business Insider (BI), the clash between Starlink and Ryanair is more than a verbal spat—it’s a lesson in value proposition within business.

Who’s Right?

The dispute began when Starlink, SpaceX’s satellite internet service, started partnering with major airlines. Recently, Lufthansa (Germany) and Scandinavian Airlines officially adopted Starlink. However, Michael O’Leary, known for his “no-frills” policy, remains unconvinced.

“We don’t believe passengers will pay for WiFi on a one-hour flight,” O’Leary bluntly told Reuters.

Elon Musk fired back: “Ryanair will lose customers to airlines offering internet.”

Why does O’Leary staunchly reject a trending technology? The answer lies in the numbers.

Speaking on Irish radio, Ryanair’s CEO revealed that installing Starlink would cost the airline $200 to $250 million annually.

“That’s an extra $1 per passenger. We simply can’t afford it,” O’Leary asserted.

He believes: “If internet were free, passengers would use it. But they won’t pay even 1 Euro for it.”

The conflict escalated when O’Leary called Musk a “moron” despite acknowledging his wealth. Musk retaliated by labeling O’Leary a “total fool” and demanding: “Fire him!”

Beyond cost disputes, the two also clashed over technical details. O’Leary argued that installing antennas on aircraft would increase weight and drag, consuming an additional 2% fuel.

Michael Nicolls, Starlink’s Vice President of Engineering, countered with data: SpaceX’s analysis of the Boeing 737-800 (Ryanair’s primary aircraft) showed a mere 0.3% fuel increase.

Musk added: “We can definitely reduce that to under 0.1%.”

Comparison

BI reports that while U.S. low-cost carriers struggle and shift to premium services for financial survival, O’Leary’s Ryanair remains profitable. Ryanair’s latest financial results show a 20% year-over-year growth, reaching €1.72 billion in post-tax profit. In contrast, Southwest Airlines saw a nearly 20% decline, leaving profits at just $54 million.

Ryanair’s model—ultra-low fares (starting at €15), rapid flight turnover, and eliminating non-essential amenities—remains highly effective in Europe.

For O’Leary, adding Starlink is akin to installing premium leather seats on a budget bus: it won’t improve speed but will raise ticket prices.

O’Leary, who has led Ryanair since 1994 and owns 4% of its shares, is one of Ireland’s wealthiest individuals. He has no plans to retire early, nor does he intend to alter his core business principles under pressure from Elon Musk.

This battle highlights a fascinating business reality: advanced technology isn’t always the best choice. For a cost-focused company like Ryanair, every saved penny is a weapon against competitors. For Elon Musk, Starlink represents more than internet—it’s a new industry standard he aims to impose.

Who’s right? The wallets of Ryanair’s 206 million annual passengers will likely provide the answer.

Source: BI, Reuters