An Air New Zealand Airbus 320 leased by Germany's XL Airways has crashed during a test flight after maintenance work.
The plane went into the Mediterranean Sea off the coast of France near Perpignan with two Germans and five New Zealanders on board.
Two bodies have been recovered and search crews are looking for the jet's data recorders and the missing people.
Air New Zealand chief executive Rob Fyfe said the cause of the crash was not yet known.
France's civil aviation authority said the plane went down as it approached Perpignan airport after an hour-long test flight.
The wreckage of the plane was reported to be in several pieces, but a rescue official said the fuselage had been found.
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