The boss of the Skydive Taupo aircraft that plunged into Lake Taupo today is praising the pilot whose quick actions saved everyone on board.

'Where the pilot is concerned I can't praise the guy enough,” says chief executive Roy Clements.

The Police boat on Lake Taupo. Photos: Lois Natta.

'He had to deal with the worst nightmare really for a pilot, what appears to be an engine failure. As a result he's told everyone to get out of the plane, and he's followed his own advice.”

Police received reports of the crash at Rotongaio Bay around 200m from the shore at about 12.15pm.

Roy says the engine stopped shortly after take-off as the fully loaded aircraft with six tandem pairs on board began the climb to jump altitude of about 10,000 feet.

The engine failed when the aircraft was at a height of about 2000feet, and as a result all of those on board, including the pilot, exited the aircraft by parachute.

'It's a lot lower than we would want to be, the minimum activation for a tandem parachute is 5000 feet,” says Roy.

'When they bailed out all the parachutes landed on the land, and the pilot steered the plane away and into the lake, where it ended up.”

The tandem pairs all landed safely. The pilot landed closer to the lake in some blackberry bushes from which he had to be cut free by fire fighters.

No one was injured with the plane sinking in 3.5m of water.

'They have just left my office.

'They handled it so well. My staff said they can't believe how calm they were, they made it really easy.

'But then the customers themselves, the tandem passengers were saying how calm the staff were, so it's pretty good – all the guys' training, there emergency procedures were utilised on this occasion. That's why they are walking around today.”

The aircraft wreckage is expected to be lifted from where it went into the lake sometime tomorrow, from where the Transport Accident Investigation Commission will take over.

'We won't be using it again,” says Roy.

He's hoping Skydive Taupo will resume operations tomorrow.