Nepali officials said at least 18 people were killed when a small plane crashed and caught fire while it was taking off from Nepal's capital Kathmandu on Wednesday.

The Saurya Airlines flight was carrying two crew and 17 of the company's staff members for a test flight, Nepali police spokesman Dan Bahadur Karki told reporters.

"The pilot has been rescued and is being treated. It is not possible to confirm the status of others on board right now. Many have not survived," he added.

The plane crashed at around 11:15 am local time, the military said in a statement, adding the army's quick response team had been lending assistance with rescue efforts.

News portal Khabarhub reported the airplane had caught fire after skidding on the runway.

The plane was scheduled to fly on Nepal's most trafficked air route between Kathmandu and Pokhara, an important tourism hub in the Himalayan republic.

Saurya Airlines exclusively flies Bombardier CRJ 200 jets, according to its website.

Nepal's air industry has boomed in recent years, carrying goods and people between hard-to-reach areas as well as foreign trekkers and climbers.

But it has been plagued by poor safety due to insufficient training and maintenance -- issues compounded by the mountainous republic's treacherous geography. (Agencies)