The twin-engine aircraft was on a routine flight to pick passengers up from Melaleuca on Saturday morning.

However, it went missing about 8.30am around the Arthur Ranges.

The pilot was the only person on board.  

Airlines of Tasmania managing director Shannon Wells said the company has "grave concerns".

“We have notified search and rescue who are searching for the pilot and aircraft,” Mr Wells said.

“The aircraft is a twin-engine Islander and is fitted with a satellite tracker. As a result of this, we have a reasonably accurate position of where the aircraft could be found.”

The condition of the pilot is unknown at this stage.

The pilot has been with the company for three years and is “very experienced and well-qualified”, Mr Wells said.

“Our thoughts are very much with the family and friends of the pilot, including all our colleagues,” he said.

The Australian Transport Safety Bureau confirmed there was an ongoing search.