Five people have died as a result of Victoria's worst civil aviation accident in 30 years, after a plane crashed into a shopping centre near Melbourne's Essendon Airport.

Key points: A charter plane crashed into the back of shops, killing all five people on board

A charter plane crashed into the back of shops, killing all five people on board Workers were in the building at the time, but all are believed to have survived

Workers were in the building at the time, but all are believed to have survived Witnesses saw the plane flying "fast and low" before the crash

Witnesses described seeing the plane, identified as a Beechcraft B200 Super King Air, erupt into a "massive fireball" after it smashed into the DFO centre just after 9:00am on Tuesday.

Pilot Max Quartermain was killed, and the US embassy in Canberra confirmed the other four people on board were US citizens.

Max Quartermain was the co-owner of Corporate and Leisure Aviation. ( Supplied: Corporate and Leisure Aviation )

"The US embassy in Canberra and US consulate in Melbourne are working closely with local authorities," an embassy statement said.

Family used social media to pay tribute to two of the victims: Greg De Haven, who was on a golf trip, and Texas lawyer Russell Munsch.

Mr Quartermain was the co-owner of Corporate and Leisure Aviation, which operated the plane.

The ABC has confirmed the Australian Transport Safety Bureau (ATSB) is investigating one of the planes run by the company, which was involved in a near miss at Mount Hotham in 2015.

The final report is due to be released to the public by May.

The company's website said Mr Quartermain had over 38 years of charter experience and "an impeccable safety record".

It is believed the group was on their way to King Island, off Tasmania's north coast.

Sorry, this video has expired Dashcam video shows the moment the plane crashed into the shopping centre (Courtesy 10 News)

The plane crashed into the back of shops — including a Spotlight store — and a carpark, which is opposite the busy Tullamarine Freeway.

A Spotlight store manager said 20 staff were inside at the time, but none were injured.

The shopping centre was not open.

Emergency services personnel were called to the site soon after 9:00am. ( AAP: Joe Castro )

'Like a movie'

Witnesses reported seeing a flash before the plane burst into a "massive fireball" that looked like something out of the movies.

Michael Howard, a 29-year-old plumber, said he saw a blue flash come down past the DFO billboard.

Sorry, this video has expired Aerial footage shows plane crash site at a shopping centre near Essendon Airport (Courtesy Channel 9)

"Then it hit the Spotlight and erupted into a huge fireball," he said.

"[I thought] what the hell? That doesn't happen every day. It was crazy, like something from a movie."

Witnesses said the plane was flying low and fast before it crashed. ( Metropolitan Fire Brigade )

A wheel and other debris from the plane was found on the Tullamarine Freeway.

Adelaide man Jason told ABC Radio Melbourne he was in a taxi and saw the plane coming in low and fast.

"The plane was coming way, way fast. I thought, that's faster than normal," he said.

"It looked like it hit the building. There was a massive fireball. I could feel the heat through the window.

"Then a wheel, it looked like a plane wheel, bounced on the road."

Sorry, this video has expired Fireball after plane crashes into DFO shopping centre near Essendon Airport

Victorian Premier Daniel Andrews said the relatives of those on board were being contacted.

"We are currently reaching out to their families to provide them with the support that they need to try to comfort them at what must be just such a horrible moment," he said.

In a statement, Essendon Airport CEO Chris Cowan said both the airport and the shopping centre were closed while investigations were underway.

Coroner, transport authorities to investigate

There will be several investigations into the crash.

A coroner will investigate the deaths with help from Victoria Police, and the Australian Transportation Safety Bureau has sent a team of four people to the scene to investigate.

The plane crashed close to the busy Tullamarine Freeway during morning peak. ( Supplied )

"It is very important important that we allow them to run their investigation … so we can get the facts, know exactly what has gone on here and learn from this terrible tragedy," Mr Andrews said.

Prime Minister Malcolm Turnbull expressed his sympathies to the victims of the plane crash.

He said he was deeply saddened by the tragedy and extended his wishes to the families of those involved.

Sorry, this video has expired Victorian Premier Daniel Andrews says today is a "desperately sad day".

Crash causes ongoing disruptions

Essendon Airport and the shopping centre will remain closed until further notice to allow investigators to gather evidence, including debris.

The shopping centre also has significant structural damage and officials want to make sure the surface of the freeway has not been damaged.

Smoke was seen billowing from DFO after the crash. ( Supplied )

The Tullamarine and Calder freeways were earlier partially closed inbound after the crash, but have been reopened.

Essendon Airport is a significant hub for air freight and Mr Andrews said he had already discussed the situation with his Tasmanian counterpart, Will Hodgman.

The plane involved was owned by Corporate and Leisure Aviation. ( Flight Aware )

The police and ambulance helicopters and the firefighting air crane will continue to operate from Essendon under special arrangements for now.

The crash has raised questions about the safety of having two airports in such a densely populated area.

Mr Andrews said now was not the time to discuss those issues.

Sorry, this video has expired Footage shows smoke rising from a retail outlet centre near Melbourne's Essendon Airport

"The most important thing is to allow those investigations to run their course and to determine what exactly has gone on here," the Premier said.

"Those facts will be established as a result of that work and then any learnings can follow those finding are fact.

Victoria's Premier Daniel Andrews said it was a "desperately sad day". ( AAP: Joe Castro )

"The most important thing is not to be second-guessing the investigation, but to be supporting it and let it run its course.

"Dealing with the facts is the most important and respectful thing we can do."

Map The plane crashed into a retail centre near Essendon Airport