The feud erupted last week after Ryanair boss O'Leary ruled out using Musk's Starlink internet service on his fleet of more than 600 jets, prompting the US billionaire to call him an "utter idiot."
The Communications Ministry also said that Starlink -- Elon Musk's satellite network and the world's largest satellite operator -- will be enabled in Israel for the first time.
According to Minister of Communications Shlomo Karhi, Elon Musk's satellite Internet network Starlink will only operate in Israel and Gaza with his ministry's approval.