The Glasgow-bound aircraft touched down in Nantes, France, for the 29-year-old to be escorted off after he became verbally abusive towards cabin crew and fellow passengers.
Video footage taken by one of the bewildered passengers shows him jostling officers as he is led away in cuffs and marched across the tarmac.
French police escorted Falconer - who has not spoken out following the incident - off the plane after landing.
Jet2 say they plan to reclaim costs against the star, while Police Scotland are investigating the incident.
Passenger Richard Davidson, from Inverness, told the Daily Record: 'Kyle's fiancee was in one row and his allocated seat was in a different row.
"He basically parked his backside next to her in complete disregard for whoever had booked the seat.
"The person came on the flight and asked him to move.
"Falconer sat in front of her in his proper seat but started mouthing off, shouting and swearing, 'f***ing this' and 'f*****g that'."
"When we landed at Nantes, cops stormed the plane. There was no messing about."
He also described the singer as being "not impressed at all".
Phil Ward, managing director of Jet2.com, slammed the singer for his disregard to the "safety and wellbeing" of fellow passengers.
He said: "Kyle Falconer may be a rock star but that is no excuse for such abusive behaviour.
"Many of the passengers on the flight were families and he showed absolutely no respect for their safety and wellbeing, which is why the captain was forced to divert the flight.
"Passengers, including famous ones, should be in no doubt that we will take whatever action necessary to stamp out such aggressive and anti-social behaviour on our flights."
The diversion led to a two-hour delay for fellow passengers.
Some passengers took to Twitter to detail the ordeal.
One wrote: "Had to detour to France because apparently kyle from the view has been arrested on our plane #awkward #couldberumours."
A Jet2 spokesman said: "Our captain made the decision to divert the Reus to Glasgow flight LS122 to Nantes today after a male passenger became increasingly violent and disruptive on board.
"Our crew had no option but to take action for the continued safety of our customers and crew.
"He has now been offloaded in Nantes and handed over to the local authorities."
He continued: "We will be launching a full investigation working alongside Police Scotland and will be following due process under the law to prosecute and recover our costs incurred by this unnecessary diversion.
"We apologise to our customers for having to witness such disruptive behaviour and for the delay to their journey home.
"Our Onboard Together initiative commits to taking a zero-tolerance stance against anti-social behaviour for the wellbeing of our customers and crew."
Police Scotland have confirmed the flight was diverted and a passenger was ejected.
