Elon Musk and CEO Ed Bastian clash over Starlink, while Delta’s Amazon Leo choice raises concerns about falling behind rivals on in-flight WiFi.
- Delta’s decision to use Amazon’s Leo WiFi instead of Starlink has sparked a public clash between Elon Musk and CEO Ed Bastian.
- Musk criticized Delta’s internet service, while Bastian defended the decision.
- Starlink offers faster, readily available onboard internet, while Delta chose Amazon’s Leo, which is still in development.
Delta Air Lines Inc. (DAL) stock is heading for a losing week as Elon Musk’s feud with the carrier over its Starlink rejection escalates, with the SpaceX (SPCX) CEO mocking Delta’s in-flight internet and CEO Ed Bastian firing back hard, saying the airline does not want to be associated with Musk at all.
Delta Air Lines stock edged 0.3% higher in Thursday’s premarket. The stock has declined 1.7% so far this week.
Musk Fire Up Clash With Delta CEO Over Starlink Rejection
The spat is more than a social media squabble. Delta is the lone major U.S. carrier choosing Amazon (AMZN) Leo-powered WiFi, a rival to Starlink, the fastest in-flight internet available today, just as competitors race to equip their fleets. Investors are weighing whether the decision leaves Delta behind on the one amenity passengers most want fixed.
Musk took aim at Delta’s connectivity, posting on X that the “best way to sandbox an AI is to put it on a Delta flight – it will have no chance of accessing the Internet!”
The jab followed an earlier post in which Musk said Delta “will lose a lot of customers.” According to an X post by an aviation insider, Bastian answered to Musk’s jibe, saying, “We do not want to be with Elon Musk. Trust me.”
At an earlier event, Bastian said Delta did test Starlink but chose not to partner with Musk. “If you know his reputation, it’s all true what they say about him,” he said.
Musk did not take the remarks well. After reports of Bastian’s comments, he said the CEO “will lose his job.”
Delta Could Trail Rivals As Amazon Leo Rollout Lags
Starlink is the quickest option in the sky by a wide margin and is available now and fast to install. Passengers report almost no latency: a website loads when they type the address, thanks to low-earth-orbit satellites.
United and Southwest are close to finishing their installations, and American and Alaska will soon offer Starlink on a critical mass of aircraft. Delta risks being left behind. Delta instead picked Amazon’s Leo service.
Leo will not enter beta until next year, so United and Southwest should finish their rollouts before Delta begins installing. Delta plans to equip only about half its fleet. No one yet knows how the system will perform.
Delta has built its premium image around a strong customer experience, making slower WiFi a potential weakness. If Amazon’s service is delayed or performs poorly, Delta may struggle to keep up with rivals as passengers expect reliable onboard internet.
Reacting to the feud, satellite communications consultant Tim Farrar said, “The aim here is to intimidate other airline CEOs who might think about choosing a competing (cheaper) solution…”
DAL Stock: Retail Stance
On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory.
DAL stock has gained over 20% year-to-date.
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