Ongoing Dispute Over Satellite Internet
The public exchange between Elon Musk and the CEO of Europe's largest discount airline has continued for a second week, with the tech mogul suggesting he might acquire the carrier following their disagreement over satellite internet services.
Musk initiated a poll on X (formerly Twitter) on Monday, asking his followers if he should purchase Ryanair and "restore Ryan as their rightful ruler."
Earlier on the same day, he inquired about the potential cost of the airline and reiterated his stance that the company should dismiss Michael O’Leary, who has led the carrier since its inception. The company was originally founded by Tony Ryan in 1984.
The dispute began last week when O’Leary announced he would not install SpaceX's Starlink internet service on Ryanair aircraft. His primary concern was the potential increase in fuel consumption due to the weight of the antenna and its impact on the aircraft's external airflow.
Musk responded by stating that O’Leary was uninformed on the matter, to which the airline executive retorted, "I would pay no attention whatsoever to Elon Musk. He’s an idiot, very wealthy, but he’s still an idiot."
Musk further escalated the exchange, labeling O’Leary an "utter idiot" who ought to be removed from his position.
Both individuals are recognized for their disruptive approaches within their respective industries, characterized by bold risks and candid communication.
Leadership and Financial Standing
Michael O’Leary has been at the helm of Ryanair for over three decades, transforming it from a modest regional airline into Europe's leading low-cost carrier. He recently received a substantial bonus for achieving specific performance targets, which contributed to a 55% increase in the company's stock value last year. O’Leary is also slated to receive a €100 million bonus in 2028 if he meets his objectives, though his personal wealth remains significantly less than Musk's.
Elon Musk holds a dominant position in the electric vehicle market through Tesla and has revolutionized space travel with SpaceX.
Ryanair's stock experienced a 2.3% increase on Tuesday. The company's valuation is approximately €30 billion (approximately $35 billion), making it three times the size of Deutsche Lufthansa, the largest airline group in the region.
Echoes of the Twitter Acquisition
This public spat unfolds as Musk's AI chatbot, Grok, faces scrutiny over reports of users generating non-consensual inappropriate sexual images of individuals on X. Irish media reported on Monday that Ireland intends to address AI image-related issues within European legislation during its upcoming presidency of the EU later this year.
Musk's question to Ryanair, "How much would it cost to buy you?", evokes a similar exchange in 2017. After expressing his fondness for Twitter that December, a journalist jokingly suggested he should purchase it. Musk's response at the time was, "How much is it?"
He revisited this past conversation nearly five years later, posting an upside-down smiley face days before making a surprise offer to buy Twitter. Musk ultimately acquired Twitter for $44 billion and implemented significant staff reductions across the company, including senior leadership.
Complexities of Airline Acquisitions
The billionaire is known for his public criticism of executives and companies on social media. During his pursuit of Twitter, he consistently critiqued the company's operations and the actions of its CEO.
Musk has previously solicited opinions from his followers on a wide range of subjects. These have included questions about accepting Dogecoin for Tesla car purchases and whether he should sell some of his Tesla shares, a move he did undertake at the end of 2021.
After acquiring Twitter stock in 2022, he polled users about their desire for a tweet editing feature. He also floated the idea of converting the San Francisco headquarters into a homeless shelter and sought public opinion on the potential revival of Vine, the short-form video platform.
Several months after asking if he should step down as the company's head, Musk appointed Linda Yaccarino as CEO in May 2023.
Acquiring airlines is not a straightforward process. For instance, IAG, the owner of British Airways, abandoned its bid to acquire Spanish carrier Air Europa in 2024 due to competition concerns. Similarly, Spirit Aviation Holdings and Frontier Group Holdings have encountered difficulties in their proposed merger.
Significant regulatory hurdles also exist for airline acquisitions. Many countries impose restrictions on foreign ownership of major carriers.