The Civil Aviation Authority (CAA) is investigating how two professional skydivers ended up seriously injured after a failed landing near Queenstown.
The incident happened about 7.45am at Drift Bay off the coast of Lake Wakatipu, when the tandem jumpers tried to perform a low turn.
Skydiving operator NZONE said the two people injured were members of staff carrying out a training exercise.
They were transported to Lakes District Hospital before being airlifted to Dunedin Hospital with serious injuries for further treatment.
They were now in a stable condition.
NZONE's operations have closed while the CAA investigates, but the company expected to reopen tomorrow.
It said it was providing support to its two staff members as well as their families
The CAA said police have the parachute the skydivers were using, and this might provide clues about what caused the landing to fail.