Musk Floats Ryanair Takeover After Clash With O’Leary Over Starlink

Elon Musk has publicly floated the idea of buying Ryanair Holdings after an escalating public dispute with the airline’s chief executive, Michael O’Leary, over the potential use of Starlink satellite Wi-Fi on commercial aircraft and its cost implications.

The exchange followed an announcement by Lufthansa Group that it plans to equip its fleet with Starlink connectivity, a service operated by SpaceX, in which Musk is the largest shareholder. O’Leary dismissed the concept for Ryanair, arguing that Starlink antennas would impose a fuel penalty of around 2% due to added weight and aerodynamic drag.

Speaking to Reuters and later to Irish broadcaster Newstalk FM, O’Leary said such a penalty could raise Ryanair’s annual costs by between USD200 million and USD250 million. He added that Ryanair passengers are unwilling to pay extra for in-flight internet, making the economics unworkable for an ultra-low-cost carrier. “Passengers won’t pay for internet usage, so it’s not coming on board,” O’Leary said.

The comments triggered a sharp response from Musk on X, the social media platform he owns. Musk initially questioned whether he should buy “Ryan Air” and install new leadership, before posting a series of increasingly personal remarks directed at O’Leary. One post on January 20 included derogatory language and accused the Ryanair chief of lacking understanding of aviation.

O’Leary responded on Newstalk by dismissing Musk’s criticism, saying he would pay no attention to the comments and questioning Musk’s understanding of aircraft performance. However, he later struck a more conciliatory tone, saying he would welcome Musk as an investor and describing Ryanair as a potentially attractive investment opportunity. O’Leary also noted that the public exchange had driven increased website traffic and ticket sales for the airline.

Ryanair Holdings is listed on Euronext Dublin, with American Depositary Shares trading on NASDAQ. As an EU-certified airline, Ryanair is subject to European Union ownership and control rules, which cap non-EU ownership at 49%. As a US-Canadian-South African citizen, Musk would be unable to acquire a controlling stake without breaching those regulations.

As of January 21, Ryanair Holdings’ market capitalisation exceeded EUR30 billion (approximately USD35 billion), making any takeover attempt highly complex and politically sensitive. Industry observers view Musk’s comments as unlikely to translate into a formal bid, but the episode underscores the growing tension between emerging satellite connectivity providers and cost-focused airlines weighing the trade-offs between passenger experience and operating efficiency.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com