Ryanair has rejected an offer from Elon Musk to install Starlink satellite equipment across its passenger fleet after more than a year of talks.
The European budget airline walked away from the proposed deal after deciding that the satellite internet service would not make commercial sense on its short-haul routes.
Steve O'Leary, the chief executive of the European airline, said the company spent over 12 months in direct discussions with SpaceX. He explained that Ryanair concluded it would be difficult to earn a profit by offering the satellite connection to passengers flying brief journeys.
Musk refused to accept that conclusion. The billionaire head of SpaceX claimed that Ryanair had made serious errors in its calculations regarding the financial viability of the project, leading to sharp public disagreements between both sides.
Short-haul routes and satellite costs
Ryanair operates as Europe's largest low-cost airline, built on a business model of quick airport turnarounds, cheap fares, and tight control over operating expenses. Installing high-speed internet on commercial aircraft requires specialized antenna hardware mounted onto the plane's fuselage, an upgrade that carries significant installation and maintenance expenses.
Starlink is operated by SpaceX, the private aerospace corporation founded by Musk. The system relies on a vast constellation of satellites in low Earth orbit to deliver high-speed broadband around the world, and SpaceX has actively pushed to sign deals with commercial passenger airlines.
Public dispute and advertising value
As the commercial discussions fell apart, the disagreement spilled into an open dispute. However, O'Leary acknowledged that the war of words had provided an unexpected financial windfall for his company. He stated that the public confrontation with Musk generated between 30 million and 40 million dollars in free advertising and media coverage for Ryanair.
The airline chief took aim at Musk directly, stating that the tech billionaire thought he was an idiot, but that he knew Musk was the idiot instead. O'Leary also remarked that it would be even better if Ryanair could find a way to anger Musk once more.
Musk and the SpaceX team have not issued any official response to O'Leary's latest comments regarding the failed partnership.
