The decision brings to an end the museum trust's $10 million-dollar dream of revamping the 18-year-old facility, which was first unveiled in 2006, but does not spell the end of the museum.
The new owner, the WOWCT, was formed in 2006 to take over the administration of Wanaka's popular biennial airshow from Sir Tim Wallis' companies, Alpine Deer Group.
The airshow trust has formed a relationship with the New Zealand Air Force Museum, at Wigram, and a more affordable, $2 million, world-class attraction is being planned at Wanaka Airport instead.
The museum hangar, in front of the Wanaka Airport runway, will be sold.
The museum will then be co-located with the airshow trust in the former Alpine Fighter Collection hangar, at the entrance to Wanaka Airport.
The transfer of the museum administration was announced yesterday in a joint statement by WOWCT chairman Murray Cleverley, of Timaru, and museum trust chairman Don Spary, of Arrowtown.
Mr Cleverley said the trust had accepted the additional challenge of developing the museum into a "world-class visitor attraction".
Details of the more affordable development would be released within the next four weeks and it would mean some new jobs would be available, he said, when contacted by the Otago Daily Times.
The new museum would be exciting, appeal to families and tourists, have changing displays and continue to have a local focus.
The airshow trust "most definitely" wanted a Skyhawk for a static display outside the museum.
The Government is expected to announce which museums will get one of several mothballed fighter jet trainers within four weeks.
"Given we are the largest aviation show in the country, we would be disappointed if we didn't get one," Mr Cleverly said.
The museum trust will be disestablished and its assets will be transferred to the airshow trust.
Both trusts have been working with the Air Force Museum of New Zealand to ensure the Wanaka museum artefacts stay in the public domain and be professionally curated.
To that end, the Air Force museum has agreed to take ownership of the artefacts, some of which will be moved to Wigram and others loaned back to the Wanaka museum.
Mr Cleverley said curating costs were high and the relationship with the Air Force Museum was "best for the protection of the artefacts".
He acknowledged the transfer could be an emotional experience for the families who had given artefacts to the Wanaka museum, and said the trust would work with them.
"We will talk about it and we will let things stay in Wanaka, if that is what they want," he said.
The museum had struggled in recent years because it had not found a major benefactor; faced increased funding competition during the economic recession; and suffered from a drop in visitor numbers.
