Ryanair CEO Rejects Musk Takeover, Cites Starlink Cost and EU Rules
Updated (2 articles)
Musk’s public overture and O’Leary’s blunt refusal Elon Musk used X to label Michael O’Leary an “idiot” and posted a poll asking followers if he should buy Ryanair, while O’Leary told Irish radio he would not engage with the proposal and called Musk an imbecile [1][2]. He emphasized that non‑European citizens cannot hold a majority stake in a European carrier, making a full takeover legally impossible [1][2]. O’Leary left the door open to a minority investment from Musk, but rejected the terms of the suggested buyout [2].
Starlink connectivity talks stalled over price and drag Ryanair has been negotiating with SpaceX’s Starlink for roughly a year, evaluating two antennas per aircraft that would add about 2 % aerodynamic drag and increase fuel consumption [1][2]. O’Leary estimated the service would cost between $200 million and $250 million annually, a figure the airline says it cannot recover from passenger fees [1][2]. The airline is comparing alternative providers to lower the expense and avoid the performance penalty [1].
Feud translates into measurable booking surge The public spat was turned into a “Big Idiot Seat Sale,” which O’Leary said boosted demand and generated a noticeable rise in bookings [2]. Ryanair even offered Musk a free ticket as part of the promotion, leveraging the controversy for marketing impact [2]. The seat‑sale campaign featured caricatures of Musk, further amplifying media attention [1].
Regulatory barrier remains decisive despite investment interest EU rules prohibit non‑EU nationals from owning a controlling share of an EU airline, a constraint O’Leary cited as a structural hurdle to Musk’s bid [1][2]. While O’Leary expressed willingness to consider a minority stake from Musk, he stressed that any investment must respect the ownership ceiling [2]. This regulatory ceiling keeps the takeover off the table regardless of the feud’s publicity benefits [1].
Sources (2 articles)
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[1]
AP: Ryanair chief dismisses Musk bid while Starlink talks continue and costs loom: AP reports O’Leary calling Musk an idiot, rejecting the buyout, detailing a $250 million annual Starlink cost, 2 % drag, EU foreign‑ownership limits, and the seat‑sale marketing stunt.
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[2]
CNN: Ryanair chief welcomes Musk feud, cites bookings boost and openness to investment: CNN highlights the feud’s lift in bookings, outlines $200‑250 million Starlink expense, drag on 643 aircraft, offers a free ticket, and notes openness to Musk investment limited by EU ownership rules.
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