"There were two people on board. They were practising landings and take offs [on the air strip]," Mr Sygrove said.
"They had just taken off and [the plane] came down hard as they were still accelerating.
"They went through a fence and hit a bush, or a rock, or the fence and set off their beacon."
Mr Sygrove said the Heliworks helicopter found the pair, understood to be a man and woman, and "gave them a lift back to Queenstown".
The plane was described as "a write off", he said.
"The pilot said they were lucky to be alive."
The Otago Daily Times understands one of the occupants was Air Milford owner Hank Sproull.
When contacted last night, Mr Sproull declined to comment.
Wakatipu Aero Club spokesman Ian Webb said he understood the club had been notified by the NZRCC when the beacon activation was detected, but the club "didn't have anything to do with the aircraft as of a week ago".
"We're obviously grateful no one was seriously hurt." Mr Webb said.