NOVA.SCOTIA (CBC) - Sydney is getting a new $2.3-million flight school, thanks to $2.2 million in government loans and payroll rebates.

The ceremony launching the Cape Breton Flight Institute (CBFI) kicked off Friday with a pair of dancing Chinese dragons, honouring the country where most of the students are expected to come from.

"We see that China has a big shortage of trained pilots," said Grace Chum, who was hired by the institute partners to complete a study of the Chinese market. "There's a lot of participation that Cape Breton or CBFI can provide."

The flight school is expected to create 70 jobs over the next five years.

If all goes according to plan, classes will start in September. The number of students attending the school is expected to grow to 250 in two years.

Students from China will live on campus at nearby Cape Breton University.

Proximity to the university makes Sydney a great location for the venture, said CBFI president Bill Gardiner.

"The airport facilities here are fantastic in terms of the runway facilities, control tower, hangar space, and CBU is right next door, so we have all the facilities there we can make use of," he said.

The cost of establishing the flight school is $2.3 million.

The school is getting a $710,000 loan from Nova Scotia Business Inc., the province's business development agency, for startup costs, as well as nearly $750,000 in payroll rebates over five years if it reaches employment targets.

It's also receiving a $750,000 loan from Enterprise Cape Breton Corp.

The private investors include Chum, who was won over by what she found in her research, and Dr. Annie Wong from Hong Kong, who will have a plane named after her.

The flight school is expected to have more than 25 planes for training within two years.

The institute also expects to help fund tuition for a few local students, in the hope they will work later as instructors at the school.

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