The Singapore-bound Airbus A320-200 from Surabaya had circled over the sea near Belitung to avoid a storm before it experienced severe turbulence and crashed into the ocean, reports said.
The flight was carrying 155 passengers on board, including 16 children and one infant, and seven crew members.
With hard details few and far between, panicked relatives gathered at Singapore's Changi airport, AFP reported.
Hundreds of Indonesians also descended on the Surabaya terminal hoping for news of the missing jet.
A 45-year-old woman told AFP that she had six family members on the plane.
"They were going to Singapore for a holiday," she said.
"They have always flown with AirAsia and there was no problem. I am shocked to hear the news, and I am very worried that the plane might have crashed."
This is the first major incident for Asia's largest low-cost carrier group. The missing jet is operated by AirAsia Indonesia, which is 49% owned by the Malaysia-based AirAsia Bhd.
Bangkapos.com reported that fishermen in east Belitung claimed to have heard a loud explosion near the coast of Kelapa Kampit between 7am and 8am Indonesian time.
The information was then channeled to Tagana (a disaster management group) to engage in a search and rescue effort.
The Indonesian news portal reported that the fishermen were fishing off the Kelapa Kampit coast when they heard the sound, roughly 10 kilometres away.
They were, however, unable to pinpoint the exact location of the explosion and suspected it could have originated near Pulau Nangka in Belitung Timur.
- TMI
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