No detail of the cost will be available until after tenders have been let.
Mr Doyle said the building will provide secure cover for at least five aircraft, rooms for teaching some 30-40 long-term students, along with about 15 contracted instructors and five permanent staff. There will also be an area dedicated for administration and other space for lectures and academic study, flying training and simulation training.
He said the arrival of the flight academy will provide guaranteed and regular revenue for the airport at a time when that revenue base was prone to changes in Government and airlines' policies.
Mr Doyle said the academy was bought with a view to building the airport's viability and securing what is regarded as key strategic asset for the district.
He said at the time of the purchase the airport was not meeting its costs "and as a result is a constant cost to the ratepayers".
"The growth of business such as the flight academy, both in terms of lease and landing fee income at the airport, will go a long way to reducing this cost and assist in sustaining the airport into the future."
Future plans for the academy would aim to increase recruiting from international markets with a target of having 70 or more students.
At the moment half the roll is made up of Indians with other students from Papua New Guinea and Tahiti. And there were opportunities to attract students from South East Asia, China and the Pacific.
"The benefit to the local economy will be in the order of $7 million annually, inclusive of student fees, student and staff living expenditure and the company's operating expenditure," Mr Doyle said. "The business is profitable and has been for a number of years. This also reflects on the level of compliance the business achieves in respect to its obligations, particularly under the Civil Aviation Act."
He said the academy provided the potential to kick-start airport development, secure funding at a sustainable level for the future and, in the medium to long term, achieve nil rates revenue in the provision of airport services for the community.
He said Holdings had been briefing other airport users to keep them up to date with the training school and that included the Wanganui Aero Club.
Mr Doyle said the aero club had expressed some concern about the impact the flight academy might have on its operation.
"We've talked them and simply reinforced the point of difference between their operation and what that training school will provide.
"We're schooling these kids for careers as skilled commercial aviators. If you want to learn to fly recreationally then the aero club is where you go."
"But we believe having the training school at the airport will in fact benefit the aero club. It should generate interest in flying but we will stress that point of difference," he said.Mayor Annette Main, council CEO Kym Fell and Mr Doyle have been given authority to work through the detail including final design, costings and financing.