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Title ACARS - Aircraft Communication Addressing and Reporting System : A feasibility study of implementing and offering ACARS to the European business aviation segment
Author Gouasmia, Salim (Copenhagen University College of Engineering, IHK)
Supervisor Siegumfeldt, Karin
Raagaard, Søren
Institution Ingeniørhøjskolen i København, IHK, DK-2750 Ballerup, Denmark
Thesis level Bachelor thesis
Education Diplomingeniør, Eksport
Education Bachelor of Engineering
Publication date 2011-05
Abstract The aim of this thesis is to build a business case for Satcom1 by researching the technological
and economic feasibility of implementing and offering ACARS (Aircraft Communication
Addressing and Reporting System) to the European business aviation segment. The thesis was
based upon a feasibility study which combines three main areas: marketing, engineering
(ACARS technology) and economics.
The market analysis was based upon secondary and primary sources, e.g. avionics engineer
interviews which showed a growing and evolving aeronautical communications market
through an EU mandate called Link 2000+ requiring ACARS capability for all aircraft
operating in the EU airspace. In addition, the Single European Sky initiative was defined to
evolve ACARS to an IP-based communications network as known from the IT and
telecommunications industry today. As a result, the competition is expected to increase
among existing service providers as well as allow new companies to enter the future market
due to the evolution of ACARS.
The ACARS technology analysis and the SWOT-analysis were made in order to identify the
requirements for Satcom1 as an ACARS service provider as well as for the ACARS
management solution. There are three ACARS management skills needed to become a
successful ACARS manager: link management, Aircraft Operational Control (AOC)
applications and hardware management. In addition, the SWOT analysis revealed that
Satcom1 is clearly capable of managing an ACARS server solution. As a result, a server
solution from the datalink network operator, SITA, because it reflects better on Satcom1’s
current business model and the necessary training for ACARS is included. Furthermore, the
marketing approach showed that an aggressive marketing campaign is needed in order to
become a successful ACARS service provider.
Moreover, the economic analysis revealed that ACARS as a stand-alone service is not feasible
due to the large running costs associated and based on the sales estimations. In addition, a
break-even analysis revealed that Satcom1 will need at least 67 ACARS subscriptions
activated from day one, if ACARS is to be sold as a stand-alone service. However, in order to
meet Satcom1’s vision of becoming a complete communications service provider and
successful with ACARS to contribute to their existing cabin communications portfolio,
ACARS should be offered together with cabin communications service, e.g. voice and data in
order to be able to cover the ACARS running costs and increase revenue on the existing cabin
communications portfolio through the provision of ACARS.
Pages 67
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Admin Creation date: 2011-05-17    Update date: 2013-07-10    Source: ihk    ID: ihk-9795365    Original MXD