New Zealand family die in reef resort plane crash

11.15pm - By AINSLEY THOMSON, HELEN TUNNAH and AGENCIES

A New Zealand couple and their two children were tonight killed when a light plane crashed on takeoff at the Australian holiday resort of Hamilton Island.

The family of four were among six people who died when the Piper Cherokee, fully laden with fuel, smashed into a hill and exploded near Great Barrier Reef Airport about 7.30pm.

Ministry of Foreign Affairs spokesman Brad Tattersfield told the Herald the four New Zealanders killed were a married couple and their children, a boy and a girl.

Australian crash investigators said the six people on board had no chance of survival.

Daily Mercury newspaper editor Jason Purdie said a witness saw the plane banking right towards Shute Harbour on the mainland as it took off.

He said it appeared to reach about 400 feet in the air when its engines failed and crashed into the side of a bushclad hill near a quarry.

The plane burst into flames and only the tail remained intact.

It was on a charter flight and was operated by Island Air.

Queensland police spokeswoman Tracey Nelson said it was believed an Australian pilot and an American passenger were also killed.

Queensland police were flying to the island last night, to cordon off the scene and make preliminary investigations.

Mr Tattersfield said it was not yet clear where the New Zealanders were from.

Civil Aviation Safety Authority spokesman Peter Gibson said the aircraft lost control soon after takeoff.

"Because it was full of fuel it has burst into flames and everyone has perished on board," Mr Gibson told Sky News.

"There was no chance of any survivors."

Mr Gibson said the weather was good.

"So at this stage it's a mystery as to what went wrong," he said.

Mr Gibson said it was unclear where the aircraft was headed, but the company involved operated charter flights between Hamilton, mainland Australia and other islands in the Whitsunday group.

Air crash investigators would examine the wreckage at first light today and interview witnesses.

"We'll be putting all that information together to get a very good picture of exactly what went wrong," Mr Gibson said. "It's too early to speculate at this stage as to what causes may have been in place."

He said the runway on Hamilton Island was about 1700m long and was capable of taking large jets.

"So there's nothing there that's difficult for a small six-seater light aircraft," he said.

He was not aware of any previous accidents on Hamilton Island.

The airport remained open last night.

The crash is another blow to the island resort, which has been financially hit by September 11 and the Ansett collapse a year ago.

Hamilton Island Ltd recently started looking to sell assets to maintain its share price after recording a 51.1 per cent fall in net profit.

The Queensland Tourism Industry Corporation chief executive, Daniel Gschwind, described the accident as a terrible tragedy.

"When aviation accidents occur it's terrible for all concerned," he said. "I don't know the circumstances but the air services on the island have been operating for some time and I understand they had an unblemished safety record."

As many as 2000 tourists stay on Hamilton Island at any one time, and use it as a launch pad to the Barrier Reef.

The island, 16km from Shute Harbour and an hour's flight from Cairns in north Queensland, has a fauna park with kangaroos, koalas and a dolphin pool.

Bush walks take visitors to high points that allow 360-degree views of the nearby islands.