A skydive passenger is missing on Lake Wakatipu and his instructor has been taken to hospital after the pair plunged into water following a possible malfunction of their tandem parachute.
A massive search for the missing man has been suspended after a crash landing this afternoon.
"A possible malfunction of the parachute has resulted in the pair entering Lake Wakatipu. The tandem master has been recovered from the lake and taken to Queenstown hospital with reported serious injuries. The passenger is still missing."
Emergency services were contacted at 1.42pm with a report that two skydivers had landed in the lake near Jack's Point settlement.
One man was recovered from the water and taken to hospital.
Water and air searches for the missing passenger were suspended about 4.40pm, while shoreline searches continued until 6.30pm.
The missing has now been in the water for more than four hours.
All searching will be suspended overnight and police will make an assessment on the situation tomorrow morning.
Eleven boats, several jet skis and planes were involved in the significant search operation.
Coastguard, a water taxi, helicopters and other emergency services also assisted.
The boats searched an area about 1.5km from the shore and battled against increasingly windy conditions.
Police earlier said the pair were wearing life jackets.
NZONE Skydive operates a commercial tandem skydiving operation in the area.
A statement from the company said a search operation was under way for a missing man following a skydiving incident.
"The highly experienced instructor, who has completed thousands of jumps, was completing a tandem jump with a male customer when they landed in a body of water," it said.
"One male is being treated at the Lakes District Hospital for minor injuries and is in a stable condition, and the search continues for the other person."
Skydiving operations at NZONE have been suspended while the search is conducted.
The company also made headlines in January last year after two of its instructors were seriously injured during a tandem training flight.
Sasa Jojic and Sasa Ljaskevic, both originally from Serbia, were hospitalised after performing a "dangerous" manoeuvre.
WorkSafe had been notified of the latest incident.
A Civil Aviation Authority spokeswoman said it had been notified but was yet to decide if it would investigate.