- Ryanair's CEO said he didn't think his passengers would want Elon Musk's Starlink internet.
- Elon Musk responded, arguing that Europe's biggest airline would lose passengers.
- Unlike US budget airlines' pivots to premium, Ryanair continues to succeed with a spartan offering.
Europe's biggest airline won't be installing Starlink on its planes anytime soon, and senior SpaceX staff like Elon Musk aren't best pleased.
Ryanair CEO Michael O'Leary isn't convinced by Starlink, Musk's satellite internet provider, which is becoming more popular among airlines.
For example, Lufthansa — the German flag carrier which runs the continent's second-largest airline group — announced on Tuesday that it would introduce the service. The following day, Scandinavian Airlines operated its first flight with Starlink.
However, as a budget airline, Ryanair is known for its no-frills offering.
"We don't think our passengers are willing to pay for WiFi for an average one-hour flight," O'Leary told Reuters on Wednesday.
His comments sparked a debate on X. Musk said in a post: "They [Ryanair] will lose customers to airlines that do have internet."
Ryanair and its subsidiaries operate a fleet of 643 airplanes, which handled 206 million passengers last year. 2024's statistics showed that it was the world's third-largest airline group, behind American Airlines and Delta Air Lines.
The Irish airline's low-cost business model allows it to offer tickets as low as 15 euros, or about $17.40. It focuses on quick turnarounds between flights, charging for add-ons like sitting next to your friends, and on-board sales, including scratchcards and duty-free cigarettes.
Every airline that's announced Starlink deals so far has included free in-flight internet for everyone on board. So, even if O'Leary changed his mind, it seems unlikely that Musk's company would let him charge Ryanair passengers to use Starlink.
SpaceX executives also took umbrage at what they said was incorrect information about the fuel costs incurred by installing Starlink.
"You need to put [an] antenna on [the] fuselage — it comes with a 2% fuel penalty because of the weight and drag," O'Leary told Reuters.
Michael Nicolls, the VP of Starlink engineering, said in an X post that Starlink terminals have a more fuel-efficient profile than other airplane internet providers. He added that SpaceX's analysis showed a Starlink terminal instead increased fuel costs by 0.3% on a Boeing 737-800, the model that makes up the bulk of Ryanair's fleet.
"Hmm, must be a way to get that down under 0.1%," Musk replied to him.
Ryanair declined to comment on Musk's and Nicolls' remarks when contacted by Business Insider. SpaceX did not immediately respond to a request for comment.
While US budget airlines have recently pivoted to offer more premium options under intense financial pressures, Ryanair has little reason to do so. Adding an amenity like Starlink would be at odds with its business model, especially if it were free for passengers.
Post-pandemic, more American travellers have been paying extra for more luxurious flights. Budget airlines have also struggled to compete on price with legacy carriers.
But on the other side of the Atlantic, Ryanair has managed to balance a spartan approach with financial success.
In its latest quarterly earnings, Ryanair posted after-tax profits of 1.72 billion euros, about $2 billion — a 20% increase from a year earlier. Southwest Airlines' latest quarterly earnings were down nearly 20% year-over-year to $54 million.
