An operation to remove the wreckage of a crashed skydiving plane from Lake Taupo is underway this afternoon.

As our exclusive footage shows, salvage divers, a helicopter operator and a range of local agencies have begun removing the plane, which crashed into the water following engine failure on Wednesday.

The tail section of the plane after it had been removed from Lake Taupo. Video & Photos: Tina Neville.

A total of 13 people, including instructors and the pilot, were on board the plane when it encountered an emergency situation during the climb to altitude.

All on board parachuted from the bright-pink Pacific Aerospace 750XL at 2000ft before it plummeted near Rotongaio Bay shortly before midday.

Bay of Plenty Police communications manager Kim Perks says all six crew and six passengers as well as the pilot evacuated the plane and landed safely onshore.

A five-person police dive squad worked with Transport Accident Investigation Commission yesterday as the wreckage of the light aircraft was surveyed, videoed and photographed.

TAIC hopes the aircraft's engine data recorder can be successfully retrieved and information downloaded to aid in the investigation as to what exactly happened.

The TAIC has already completed interviews with five of the tandem skydive masters and four key eyewitnesses.