Regional Express (Rex) will use the building, to be named the national storage complex, to house engine parts and components for its prop-driven and jet-powered aircraft.

The airline already has a small warehouse at Wagga airport but it is nearly full with items such as propeller nose cones and rows of passenger seats destined for newly acquired Boeing 737 jets.

Rex deputy chairman John Sharp said the airline was making the investment as air travel recovers with the removal of COVID-19 restrictions.

"All the parts, bits and components that you need to keep approximately 150 aircraft going will be housed here in Wagga, which is a key location that can access Melbourne and Sydney and on to other areas via air services," he said.

"This is a really good hub for Rex's storage of parts and components for aircraft."

Mr Sharp said the airline would hire Wagga-based contractors for the warehouse's concrete foundation and building assembly.

"It's roughly a $1 million investment and it will further support the Wagga economy and a number of jobs to maintain and control what goes on in the warehouse," he said

"It's a vote of confidence in Wagga and the local business community and will help to make Wagga an increasingly major part of Rex; there is no other place in the airline like Wagga and we don't have as many people at other facilities."

If the airline is granted development approval, visitors to the airport will be greeted to the sight of a three-storey building near the main entrance at Elizabeth Avenue, which will be painted with the Rex livery.

"It will be a very large storage complex that will be the first thing you see when you get to the airport ... 57 metres length by 35 metres," Mr Sharp said.

"It will have a huge REX sign. You will never miss it."

REX hopes to have the building completed towards the end of this year or early next year.

The airline's fleet ranges from the 737 jets that carry passengers on its capital city routes, to the Saab 340 that service Wagga and its regional routes, and the smaller King Air planes for ambulance services.

Rex will use its aircraft to deliver spare parts from Wagga to other airports as required, particularly to capital cities where land for warehouses is in short supply.

Mr Sharp said the Wagga pilot academy was also "back in action" with foreign students being able to return.

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