The council this week committed to seek $300,000 for a feasibility study into the project, a brainchild of councillor John Watson.

The cableway is part of a "priority projects" advocacy plan for the city, it also includes a new Albury-Wodonga hospital, a youth homelessness centre and stage two of Baranduda Fields.

Mayor Kev Poulton singled out the gondola and an international freight airport as "exciting", when he spoke to the media on Tuesday.

"Some people would say that the gondola is a pipedream, I think it's visionary," Cr Poulton said.

"(Cr Watson) said 'why don't we look at a gondola' and we all sort of chuckled for the first 12 months working together but then we started to realise that's what visionary ideas are.

"You don't pooh-pooh them, you don't throw them out you just go 'hey let's see what is that next potential, what's next, what are we lacking'."

Cr Poulton described the proposal as "primitive" but suggested it could involve transport from the bottom of the hill to the peak, with scope for a coffee van or mobile bar at the summit.

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The council plan states a feasibility study is needed to assess "the technological, financial, and operational characteristics of a gondola, the social, economic, and environmental impacts of the system, and the project's potential catalytic value for Wodonga and the region".

News of the gondola idea generated a mixed response.

Business Wodonga chief executive Graham Jenkin was very enthusiastic about the tourism potential.

"I'd probably dispense with the feasibility study and just do it," Mr Jenkin said.

"Huon Hill, it's a bit of an effort getting up there, but once you're there it's a wonderful view and if something could be done to get people up there it would be good."

Engage Wodonga representative Michelle Cowan believed the proposal should have been aired publicly before being included on the advocacy list of priority projects.

"It's very interesting as to how it made it into that document," Ms Cowan said.

"We hope the advocacy document isn't full of pet projects.

"They've got to have a little bit of community buy-in, I'm not sure there's any buy-in for a gondola."

Benambra MP Bill Tilley was scathing of the proposal.

"I don't think this passes any pub test," Mr Tilley said.

"A $300,000 feasibility study for a gondola up Huon Hill seems out of touch with the community and poorly timed - people are worried about paying their energy bill and putting food on the table.

"The study is one thing, but then you are going to have to stump up for constructions and then the ongoing maintenance, where will it end?"

Cr Poulton said the international freight airport would involve a runway being built as part of the Logic industrial hub to link with transhipment and industry.

He suggested it could complement Albury airport as a centre for passenger flights.

Mr Tilley posited a Border air cargo hub in 2017 during a speech to open the Hume Bank branch at the Wodonga Place shopping centre.

"My grand vision would see an air freight terminal, perhaps at Barnawartha, carrying fresh produce and manufactured goods direct to the world and right out of our own backyard," Mr Tilley said.

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