Ryanair Boss Thanks Elon Musk for Boosting Bookings with Public Feud

TLDR

• Ryanair CEO Michael O’Leary says his public dispute with Elon Musk generated 3-4 million website hits and increased bookings 2-3% over five days.
• O’Leary rejected Starlink for Ryanair’s 600+ aircraft fleet due to installation costs and fuel drag estimated at €100-200 million per year.
• Musk suggested buying Ryanair after O’Leary’s rejection, but EU rules prevent non-European citizens from owning majority stakes in European airlines.
• O’Leary joked that Ryanair stock would provide better returns than Musk’s $44 billion purchase of X (formerly Twitter).
• Ryanair shares climbed 2.83% during the feud, closing at $70.45 on Wednesday with a 1.37% daily gain and 3.89% overnight increase.

Ryanair CEO Michael O’Leary held a press conference in Dublin on Wednesday to address his ongoing dispute with Elon Musk. O’Leary thanked the billionaire entrepreneur for the free publicity generated by their public argument.

The budget airline’s “great idiots” seat sale launched Tuesday received three to four million website hits. O’Leary confirmed that bookings jumped 2% to 3% in the past five days due to attention from the controversy.

The disagreement started when Ryanair decided against installing Starlink satellite internet on its fleet. O’Leary cited high costs and operational concerns as the main reasons for rejecting Musk’s service.

Why Ryanair Rejected Starlink

Ryanair held discussions with Starlink for approximately 12 months about providing onboard Wi-Fi. The talks broke down over disagreements about passenger demand and installation expenses.

O’Leary said adding Starlink equipment would increase fuel consumption through antenna drag. The airline estimated this would raise its annual fuel bill by €100 to €200 million, or roughly $250 million.

Ryanair and Starlink also disagreed on how many passengers would pay for Wi-Fi access. Starlink projected 90% of passengers would purchase the service while Ryanair’s estimates showed fewer than 10% would pay.

Musk escalated the situation on January 20 by suggesting he could acquire Europe’s largest airline by passenger volume. He posted a poll on X asking followers whether he should buy Ryanair and fire O’Leary, with about 75% voting in favor.

EU Regulations Block Potential Takeover

O’Leary dismissed the takeover talk, explaining that European Union rules prevent foreign nationals from owning majority stakes in EU airlines. This makes a full acquisition by Musk legally impossible.

The CEO said Musk is free to invest in Ryanair as a publicly traded company. O’Leary took a subtle jab at Musk’s business decisions by suggesting Ryanair shares would deliver better returns than his $44 billion X acquisition.

O’Leary offered Musk a complimentary airline ticket to thank him for the publicity boost. He described the attention from their feud as “wonderful” for Ryanair’s marketing efforts.

The publicity appears to have helped Ryanair’s stock performance. Shares rose 2.83% over the past week as news of Musk’s proposed acquisition spread.

On Wednesday, Ryanair stock closed at $70.45, gaining 1.37% during regular trading hours. The stock added another 3.89% in overnight trading following O’Leary’s press conference.

Ryanair shares have climbed more than 58% over the past year. TipRanks shows one analyst rating the stock as a Buy with a Moderate Buy consensus rating.

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