Elon Musk Plans Ryanair Takeover, Seeks CEO Michael O’Leary’s Dismissal

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Elon Musk Plans Ryanair Takeover, Seeks CEO Michael O’Leary’s Dismissal

Elon Musk, the CEO of SpaceX and Tesla, has stirred controversy with Ryanair’s CEO, Michael O’Leary, over the airline’s stance on in-flight Wi-Fi services. This conflict began when Ryanair announced its lack of interest in Starlink, citing concerns over increased drag and the unwillingness of passengers to pay for the service.

Key Details of the Dispute

O’Leary articulated that installing Wi-Fi could increase drag by approximately 2%, resulting in substantial operational costs. He estimated that integrating Starlink Wi-Fi would cost Ryanair between $200 million to $250 million annually. O’Leary asserted that passengers would not pay a fee for such services, stating, “If it’s free they’ll use it, but they won’t pay €1 to use the internet.”

Escalation of Tensions

The situation escalated when O’Leary dismissed Musk as “an idiot,” going on to criticize his understanding of aviation. In a radio interview, O’Leary remarked, “What Elon Musk knows about flights and drag is zero.” This harsh critique seemingly fueled Musk’s response on his social media platform, where he referred to O’Leary as an “utter idiot” and suggested he should be fired.

Online Reactions

The feud has sparked significant attention online, with speculation about Musk’s potential acquisition of Ryanair. Some analysts suggested that if Musk offered a 50% premium for Ryanair’s stock, he could buy the company for around $53 billion—the equivalent of just 7% of his total net worth.

  • Elon Musk criticized Michael O’Leary over Starlink.
  • O’Leary highlighted concerns over costs and passenger willingness to pay.
  • Musk suggested Ryanair could face customer loss without Wi-Fi.

The Business Implications

Both Musk and O’Leary are recognized for their bold statements. O’Leary has efficiently directed one of the world’s leading low-cost carriers for years, proving his insight into passenger preferences. While the back-and-forth may seem trivial, it could significantly shape perceptions of both leaders.

Conclusion

The ongoing feud between Elon Musk and Michael O’Leary over Starlink underscores deeper issues within the airline industry regarding in-flight services and customer expectations. With both powerful figures at the center of this debate, the outcomes could influence future strategies for airlines adapting to digital connectivity trends.