A West Caribbean Airways jet traveling from Panama has crashed in Venezuela, killing all 152 passengers and eight crew on board. The aircraft was en route from Panama to the French Caribbean island territory of Martinique, when it went down in a mountainous area near Venezuela's border with Colombia.

The crash was reportedly caused by engine failure. Rescuers said it was difficult to reach the scene, as the plane came down in a remote area.

Most of the passengers were thought to be French government officials, who had been holidaying with their families.

Shocked relatives of the victims went to the Fort-de-France airport, where the French Foreign Ministry had set up a crisis unit to deal with enquiries.

French leaders offered their condolences to the families of the deceased.

French Prime Minister Dominique Villepin said: "First of all, let me express my emotion after the accident. In this tragic moment, our first thoughts go to the victims and their families. I express to them a sign of support from all the nations and my deepest sympathy."

Earlier, Jacques Chirac's office said the French President had learned, with deep emotion, of the incident.