The TAIC report said the plane did not have any technical defects that would have caused the crash but the centre of gravity was out, creating a tendency for the nose to pitch up, putting the aircraft excessively out of balance.
The high pitch angle made it highly probable that the parachutists, unless strapped in, would slide back to the tail.
The Skydive NZ plane, a former top dresser, had been converted to a passenger-carrying craft, but not properly, the TAIC report found.
The chief executive of the New Zealand Parachute Industry Association, Keith Gallaher, told the inquest that his organisation certified skydivers but had no control over the plane or pilot; that role rested with Civil Aviation.
He had no reason to doubt that Skydive NZ was not operating properly.
He said the Fletcher FU aircraft, being long and skinny, was "tippy" and not really suited to carrying skydivers, but his company had operated one for five years without incident.
"We know that we shouldn't overload an aircraft but trust the pilot to tell us how many people we can put on it."
Mr Gallaher said operators had expressed concern about weight and balance issues with the Fletcher planes.
When it crashed, the plane was 17kg over weight, but was still carrying a lot less than it used to as a crop duster, and would have managed the weight had the balance been right.
The Greymouth Courthouse was today packed with relatives of those killed, some whom who travelled from overseas. For
Witness Kirsty Sullivan was at home in the kitchen of her house adjacent to the airstrip. She thought the plane was going to do a stunt but then it turned in the direction of her house.
"It kept heading towards us and was getting lower, and then there was a huge bang."
Joanne Clark was visiting the Sullivans at the time. She thought it was a stunt plane because the ascent was so rapid, but then thought it would hit the house. She picked up the Sullivans' 10-year-old son and ran from the window.
The Reverend Robin Kingston read out a statement on behalf of the Kirsten family, from Germany.
Annita Kirsten's parents said the death of their daughter had devastated them.
The Kirstens said the Civil Aviation Authority (CAA) did not fulfil its supervisory duties, and the Skydive pilot had been irresponsible.
The Coker family also alleged that there were failings on behalf of CAA and the aircraft operator, alleging that the plane had flown overloaded on 75 previous occasions.
Their last contact with their son was an e-mail saying: "Don't worry, we are keeping safe."
Flynn Miller, whose father Rod was a director of the Skydive company, said his father had completed 14,000 skydives and was "totally safety conscious in everything he did".
The inquest is continuing.
- Greymouth Star
