The decision to lease or own satellites is becoming increasingly relevant in the dynamic commercial space industry. As satellite technology advances and financial models evolve, companies must assess the benefits and challenges of each approach. We spoke with Ilias Tsakalis, Chief Operating Officer of Space Leasing International (SLI), an aerospace subsidiary of Libra Group specializing in leasing capital-intensive space assets to discuss why leasing satellites is an emerging solution that is enabling accessibility in space tech. With over 15 years in satellite communications and 25 years in finance and business development, Tsakalis provides valuable insight into how leasing is shaping the future of commercial space operations.
The Core Trade-off: Capital Investment vs. Flexibility
“One of the fundamental distinctions between leasing and owning satellites comes down to financial structure,” says Tsakalis. “Owning a satellite requires significant upfront capital and a long-term commitment. While operators are responsible for managing the asset throughout its lifecycle—including operations and decommissioning— regardless of whether they own or lease, leasing offers a way to reduce the financial burden of ownership and shift capital costs to a more flexible, operational model.”
The alternative financial model that leasing offers prioritizes operational flexibility over heavy capital investment. “Instead of making a massive upfront purchase, companies can convert it into a predictable operating expense,” Tsakalis explains. “This enables operators to scale with demand while reducing financial exposure.”
For emerging players in the satellite industry, leasing lowers the entry threshold, allowing capital to be directed toward R&D, market expansion, or high-return projects instead of asset ownership. It also helps mitigate technology obsolescence—a growing concern in an industry where hardware advancements outpace satellite lifespans. “We’ve seen satellites launched as recently as 2017 or 2019 already falling behind today’s software-defined models,” Tsakalis notes. “Leasing allows companies to upgrade more easily as technology evolves.”
Leasing in Space: Drawing Parallels from Aviation & Telecommunications
Leasing has transformed industries like aviation and telecommunications, offering capital-efficient financing solutions for these asset-heavy businesses. Tsakalis argues that a similar opportunity exists for the space industry, where space assets, such as software-defined (SD) satellites and ground stations, share key characteristics with leased aircraft and telecommunications towers.
According to Tsakalis, these asset classes share fundamental financial and operational similarities:
Aircraft and SD Satellites
Both require significant upfront investment, have a long expected lifespan, and are transferable and financeable assets that retain residual value.
Telco Towers and Ground Stations
These are critical infrastructure assets, designed for long-term operational stability, and can be repurposed for evolving industry needs.
Given these parallels, Tsakalis and the SLI team expect leasing to gain traction as a viable financing solution for satellite operators and OEMs.
However, key differences still exist—particularly in scientific and government-led missions, where ownership is likely to remain the prevailing model due to more restrictive security and strategic considerations.
Regulatory Challenges and Evolving Frameworks
As a relatively new financial model in space, leasing faces regulatory hurdles, particularly regarding orbital slots, frequency spectrum rights, and liability laws. However, the policy landscape is evolving to address these challenges.
“Regulatory bodies are adapting to enable more flexible business models,” Tsakalis says. “Countries that historically relied on sovereign ownership are now considering leasing as a complement to national space strategies.” As the space industry continues to evolve, international and national regulatory agencies are working to develop frameworks that support leasing while ensuring compliance with existing space laws and frequency spectrum regulations. The Cape Town Convention and its Space Assets Protocol are among the legal mechanisms laying the groundwork for more structured leasing arrangements in space.
As private-sector investment in space grows, Tsakalis expects regulatory pathways to become clearer. “We’re at an inflection point,” he notes. “In the next few years, leasing will become a widely accepted approach in commercial satellite operations.”
Enabling Growth in Emerging Space Segments and Private Investment
Beyond communications satellites and ground stations, Tsakalis sees leasing as a critical enabler of other space segments and infrastructure expansion. “Leasing can help enable operators to focus on their core missions instead of the complexities of managing infrastructure,” he says. “As the industry expands into space-based operations , the ability to lease specialized assets—such as orbital data centers and life extension vehicles—can significantly lower financial barriers to entry and accelerate industry growth.”
A Flexible Financial Tool for a Changing Industry
Leasing won’t replace ownership across all areas of the satellite industry, but it offers a compelling alternative for commercial operators prioritizing scalability, risk management, and capital efficiency. As technology evolves and private investment expands, leasing will likely become a fundamental financial tool in the space economy.
“Operators need flexibility to grow and innovate — SLI’s recent acquisition of RBC Signals’ ground stations underscores this trend. Facing increasing demand from both existing and new customers, RBC Signals needed to rapidly scale its ground station network. Rather than pursuing traditional financing through debt or equity, leasing from SLI provided a more efficient and strategic approach to asset deployment, optimizing capital allocation and accelerating market responsiveness”.Tsakalis concludes. “Leasing isn’t about replacing ownership—it’s about creating options that support business growth in a rapidly evolving industry.”
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