A search and rescue operation is under way after Malaysia Airlines said a plane carrying 227 passengers and 12 crew on board went missing en route from Kuala Lumpur to Beijing.

The company said that it lost contact with the aircraft two hours after takeoff and it was now working with authorities who had deployed search and rescue teams to locate the aircraft. The plane left Kuala Lumpur at 12.41am local time on Saturday (6.41pm GMT on Friday).

A statement from the airline said it was contacting the next-of-kin of passengers and crew.

"Our thoughts and prayers are with all affected passengers and crew and their family members," it said.

Radar contact with the aircraft, flight MH370, was lost in airspace controlled by Vietnam in the early hours of Saturday morning, China's Xinhua news agency said. The aircraft did not enter airspace controlled by China and did not make contact with Chinese controllers, Xinhua added.

Xinhua said 160 of the passengers on board were Chinese nationals, citing Chinese aviation officials. A Malaysian Airlines spokesman said Australians were believed to be among the other nationalities on board, News Corp reported.

China's foreign minister, Wang Yi, told a scheduled press conference China was doing all it could to confirm details of the incident and said he was "very worried", state media reported.

The flight had been expected to land at Beijing at 6.30am local time. The passengers on board included two infants, according to the airline, which also released a telephone number which members of the public could call to seek information.

The last major accident involving a Malaysia Airlines flight was in September 1995, when one of its aircraft crashed in the Malaysian city of Tawau, killing 34 people on board and injuring nine on the ground.

The initial statement published on Facebook by the airline said: "Malaysia Airlines confirms that flight MH370 has lost contact with Subang air traffic control at 2.40am, today (8 March 2014).

"Flight MH370, operated on the B777-200 aircraft, departed Kuala Lumpur at 12.41am on 8 March 2014. MH370 was expected to land in Beijing at 6.30am the same day. The flight was carrying a total number of 227 passengers (including 2 infants), 12 crew members. Malaysia Airlines is currently working with the authorities who have activated their Search and Rescue team to locate the aircraft.

"The airline will provide regular updates on the situation. Meanwhile, the public may contact +603 7884 1234 for further info."

A Boeing 777, part of Boeing's most popular family of large twin-engine jets, was involved in a crash in July last year in San Francisco in which three people died. One of the passengers who died was hit by a fire truck in the aftermath of the crash. Despite the deaths and injuries suffered by many of the plane's 291 passengers, safety experts subsequently said that the safety features of the aircraft "helped to prevent" a much worse disaster.

One of the planes also crash-landed short of a runway at Heathrow airport in January 2008, ripping off part of its undercarriage. All 136 passengers and 16 crew escaped from the British Airways flight from Beijing. It crashed after losing power because of a restricted fuel flow to both engines, the Air Accidents Investigation Branch (AAIB) said afterwards. It concluded that the crash-landing was probably caused by a buildup of ice in the fuel system on the plane.

Malaysia Airlines was last year voted was voted Asia's leading airline at the World Travel Awards 2013, beating 11 other big name full service carriers.

But it has been struggling financially. Earlier this year, it posted its fourth consecutive loss. It announced last month that it was waiting for government approval to place a multibillion dollar order for up to 100 Airbus and Boeing passenger aircraft, two people familiar with the negotiations told Reuters, a move aimed at boosting its profitability.

The new aircraft will lower the airline's operating costs by allowing it to retire its older, less fuel-efficient aircraft. That may help it cope with intense competition at home and within Southeast Asia, the people said.

The airline has 88 aircraft in its fleet, including Airbus A330s and A380s, and Boeing 777-200s and 737s, according to its website.