A trainer aircraft with the Indian Navy's aerobatics team, Sagar Pawan, crashed into a two-storied building during an air show here Wednesday. Two people, the pilot and the co-pilot, have been killed.

Pilot Maurya and co-pilot Nair were killed, Police Commissioner A.K. Khan said.

The aircraft, an HJT-16 Kiran Mk2 trainer built by Hindustan Aeronautics Ltd, crashed a couple of minutes before noon in the congested Bowenpally locality near the old Begumpet Airport in the heart of the city.

Four people in the building, a part of which was badly damaged, were injured. The debris from the car fell on a car, crushing it.

Thousands of people were enjoying the spectacle when disaster struck, sending thick clouds of smoke into the air.

The aircraft, part of the navy's aerobatics team that uses four trainers, was unable to pull up from a dive and went into a spiral as the planes were breaking away from the formation and going at different directions.

There were no casualties on the ground, police said.

According to witnesses, the plane had crashed into the mobile phone towers on top of the building. They heard a loud boom, after which the plane went down.

Residents were in a state of shock.

Said Ashok, who was in his house at the time: 'I was inside the house when I heard a loud noise and I came out to see flames.'