Ryanair/SpaceX: could Musk really buy the airline?

When Ryanair boss Michael O’Leary ruled out installing SpaceX’s Starlink internet in the company’s planes – claiming the cost of installing the aerial antennas was unaffordable – he triggered a “bizarre feud”, said Peter Campbell in the FT. It culminated in a suggestion from Elon Musk that he might buy the Irish carrier, if only to fire its “utter idiot” chief executive.

The spat between two of the most provocative business leaders quickly went viral. While O’Leary dismissed X/Twitter as a “cesspit” and claimed Musk knew “zero” about planes, Musk retorted with a poll titled “Buy Ryanair and restore Ryan as their rightful ruler” (its founder Tony Ryan died in 2007).

The Ryanair chief argues the antennas would result in a “2% fuel drag”, said Julia Kollewe in The Guardian – adding $200-$250 million per year to the company’s $5 billion annual fuel bill, which he couldn’t recoup. While a buyout may look like “idle talk”, Musk “has followed through on such threats before” – as Twitter discovered in 2022.

Ryanair’s shares have barely budged, suggesting investors aren’t taking the idea seriously, said Peter Campbell. Raising Ryanair’s $35 billion market value would be a stretch even for Musk. He’d also have to take on Brussels. Under EU rules, airlines based in the bloc must be majority owned by European nationals.