Ryanair Ready for Wi-Fi, Refuses to Pay For It

Is it possible they both can lose? That was the overriding feeling I had over the past week while obliquely knowing Michael O’Leary and Elon Musk were fighting over whether Ryanair should install the Starlink inflight internet service on board.

We have been in discussion with Starlink, his satellite system, for about over 12 months now. It is a very good system. We like the Starlink system. It is a terrific system. It works very well.

– Ryanair Group CEO Michael O’Leary

The reality, of course, is that both are right in some ways and wrong in others. In a press conference on Wednesday morning O’Leary moved past the quips to a more nuanced take on the inflight Wi-Fi market while also acknowledging that the bickering is, at least on his end, simply smart marketing. Ticket sales are up a few percent over the past five days. Given this is typically the slowest quarter for the carrier that’s a big deal. But still not enough to sign on for a Wi-Fi contract. Yet.

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At issue, at least initially, was the impact to fuel burn of installing the pair of Starlink antennae atop the aircraft. O’Leary insists there is a hit to fuel efficiency, which is magnified by the sheer volume of fuel Ryanair consumes annually. Musk says the data O’Leary is working from is old and no longer relevant. And, like many things, the truth likely lies somewhere in between.

We don’t believe passengers will pay for it, but it would certainly be a welcome addition if we can, in some way, finance it and put it on board our aircraft for free. – Ryanair’s Michael O’Leary on inflight internet

The newer, lower profile terminals deliver a reduced fuel burn compared to the prior generation. But the number is still likely a bit more than zero.

Perhaps more significant (and less digestible in a social media fight) is the broader economics of getting Wi-Fi on to planes. On this front O’Leary presents a strong understanding of the market, though he shied away from mentioning one of the most significant costs associated with deploying a Starlink solution.

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The company absolutely believes connectivity will happen. Eventually. But it seems likely another generational cycle on the hardware will be necessary to meet the carrier’s need to roll it out, “only in a way where it will lower our costs.”

After all, Ryanair flies around the extra weight of internal stairs on its 737 fleet (and eats the associated fuel burn) to lower costs elsewhere in its operations.