Ryanair's CEO Michael O'Leary has come out of a heated spat with Elon Musk, the founder of SpaceX and Starlink, unscathed - thanks to what he calls "free PR". The billionaire entrepreneur had publicly called O'Leary "misinformed" over Ryanair's refusal to install Starlink on its fleet of 650 aircraft. However, this public exchange turned out to be a windfall for the airline.
According to O'Leary, the controversy generated an astonishing 1,500 news articles across nearly 60 countries - many of which highlighted the airline's brand, even if none had known about it before. This publicity coup has left Ryanair feeling grateful for Musk's aggressive response.
In a bid to capitalize on the negative attention, Ryanair launched a "Big 'Idiot' Seat Sale" targeting Musk, offering discounted seats in an attempt to sway public opinion. The airline reported a modest 2-3 percent increase in bookings during this time, with revenue rising by 9 percent year-over-year.
The reason behind Ryanair's hesitation on installing Starlink is largely due to the added costs of fuel drag and customer fees. O'Leary estimates that these costs could add up to €200 million per year for installation and penalties. He believes that only around 5-10% of passengers would be willing to pay extra for in-flight wifi, which he thinks wouldn't significantly boost revenues.
Moreover, the CEO is unconcerned about his competitors - EasyJet and Wizz Air - following suit with Starlink. O'Leary points out that customers are more likely to focus on the cheapest fare than on whether there's free wifi available. However, if costs can be reduced to a suitable level, Ryanair might reconsider fitting Starlink technology onto its planes in the future.
O'Leary hopes that advancements in technology will drive down installation and fuel-related costs in five years' time. By then, he predicts most airlines will have installed wifi on short-haul flights - including his own airline. As such, when that day comes, Ryanair will undoubtedly consider installing Starlink systems without adding any drag or compromise to the aircraft's design.
According to O'Leary, the controversy generated an astonishing 1,500 news articles across nearly 60 countries - many of which highlighted the airline's brand, even if none had known about it before. This publicity coup has left Ryanair feeling grateful for Musk's aggressive response.
In a bid to capitalize on the negative attention, Ryanair launched a "Big 'Idiot' Seat Sale" targeting Musk, offering discounted seats in an attempt to sway public opinion. The airline reported a modest 2-3 percent increase in bookings during this time, with revenue rising by 9 percent year-over-year.
The reason behind Ryanair's hesitation on installing Starlink is largely due to the added costs of fuel drag and customer fees. O'Leary estimates that these costs could add up to €200 million per year for installation and penalties. He believes that only around 5-10% of passengers would be willing to pay extra for in-flight wifi, which he thinks wouldn't significantly boost revenues.
Moreover, the CEO is unconcerned about his competitors - EasyJet and Wizz Air - following suit with Starlink. O'Leary points out that customers are more likely to focus on the cheapest fare than on whether there's free wifi available. However, if costs can be reduced to a suitable level, Ryanair might reconsider fitting Starlink technology onto its planes in the future.
O'Leary hopes that advancements in technology will drive down installation and fuel-related costs in five years' time. By then, he predicts most airlines will have installed wifi on short-haul flights - including his own airline. As such, when that day comes, Ryanair will undoubtedly consider installing Starlink systems without adding any drag or compromise to the aircraft's design.