Ryanair rejected satellite internet Starlink as it is too expensive. Meanwhile, the management of the Latvian airline airBaltic seized the offer and has already installed internet on 23 aircraft.
Don’t Look a Gift Horse in the Mouth?
American multimillionaire Elon Musk is offering all interested airlines the Starlink technology for providing Wi-Fi on board airplanes.
However, it’s not that simple. According to Ryanair CEO Michael O'Leary, the necessary equipment on the fuselage of the planes increases fuel consumption. Moreover, the installation of the equipment for receiving satellite signals is not cheap either. Overall, the "free" internet will cost the Irish company between $200 million and $250 million.
Ryanair's fleet consists of 650 aircraft. Thus, equipping one aircraft with Starlink will cost about $300,000.
The fleet of airBaltic consists of 52 planes. Using Michael O'Leary's calculations, equipping all of them with Elon Musk's internet would cost airBaltic about $15 million. Is this not too expensive for a troubled airline?
Commercial Secret
The portal bb.lv reached out for comments to the Latvian national airline airBaltic. The good news is that they responded to the questions. The bad news is that the answers were vague and evasive. However, judge for yourself.
— How many airBaltic aircraft have already been retrofitted to receive Starlink signals?
— Currently, the Starlink system has been installed on 23 airBaltic aircraft.
It is planned that by 2026 this number will reach approximately 30 aircraft. It should be emphasized that the planes are not "retrofitted" — an additional system is installed to provide internet access via satellite connection.
— How much does it cost to retrofit one aircraft?
— For more detailed information on costs, please contact the supplier — Starlink.
— Does airBaltic plan to charge for internet usage to at least partially cover the costs of installing Starlink?
— Currently, airBaltic does not plan to introduce a charge for internet usage during flights.
— Ryanair CEO Michael O’Leary stated that SpaceX offered Starlink for free. What about your case — did airBaltic receive this technology: a) for free; b) paid for it (if yes, how much); or c) did SpaceX pay airBaltic for implementing this internet solution?
— The cooperation between airBaltic and Starlink is based on a commercial agreement, the terms of which are not subject to public disclosure.
— Ryanair CEO Michael O’Leary noted that implementing Starlink on 650 Ryanair aircraft would cost between $200 million and $250 million. What expenses has airBaltic incurred?
— airBaltic does not comment on public statements made by other airlines or the details of their agreements. It should be emphasized that implementing the Starlink system, like any new technology in aviation, is associated with additional costs for installation, equipment maintenance, and its integration into operational processes.
It should also be noted that airBaltic's fleet, scale of operations, and business model are significantly different from competitors, so direct financial comparisons between the two companies are inappropriate.
In this case, airBaltic views the incurred costs as long-term investments in passenger experience, product quality, and brand competitiveness, rather than as a separate expense item that needs to be directly compensated through additional charges to passengers.
You’re the Fool!
The refusal of Starlink has soured the relationship between the seller (SpaceX CEO Elon Musk) and the would-be buyer (Ryanair CEO Michael O'Leary).
Musk called O'Leary "unbearable" and "an idiot" after he refused to install the Starlink technology on his planes.
O'Leary did not hold back. Speaking at a press conference, he said he does not take Musk's insults seriously, noting that he is regularly insulted at home by four teenage children, as well as by many other people.
"If he wants to call me an idiot — he’s not the first and certainly won’t be the last..." said the Ryanair CEO.
