Sergeant Peter Graham of Te Anau police said yesterday the aircraft was "on its back, the engine's ripped clear, and it's broken in about three places".
Civil Aviation was still gathering information from the operator and the injured crew members, as well as any other available information from the site of the accident, spokesman Mike Richards said yesterday.
"It is unlikely that we will deploy a team to conduct an onsite investigation at this stage," he said.
"TAIC [Transport Accident Investigation Commission] has the first right to investigate. We're waiting to hear what they want to do and in the meantime we're gathering information from the scene."
Milford Sound Flights is a joint venture between tourism giants Skyline Enterprises and Real Journeys.
Milford Sound Flights chief executive Jeff Staniland said yesterday the incident would be subject to an investigation, but "our focus right now is obviously our pilots."
"In respect of the circumstances we will be suspending our commercial operations this weekend. It's been a difficult day for the team and their families here at Milford Sound Flights. Our thoughts are with our pilots at this time."