The pilot of a skydiving plane that plunged in to Lake Taupo saw flames coming out of the aircraft's engine exhaust moments after its engine suddenly stopped.
A team of three investigators from the Transport Accident Investigation Commission (TAIC) have begun piecing together the last moments before Skydive Taupo's bright-pink Pacific Aerospace 750XL fell from the sky with six skydivers and another six instructors on board.
All were forced to abandon the plane at 2000ft, before it crashed in to the lake near Rotongaio Bay shortly before midday yesterday.
It is expected to be recovered from the lake tomorrow.
This afternoon, TAIC air accident investigator Peter Williams said the cause of the engine failure wasn't immediately clear -- and pieces of the engine may have to be sent to the plane's manufacturer in Canada.