Civil Aviation Safety Authority spokesman Peter Gibson says Regional Express Airlines crew reported the right engine propeller assembly separated from the Saab 340 plane 20 kilometers southwest of Sydney Airport.
Flight 768 was carrying 16 passengers and three crew from Albury, 500 kilometers southwest of Sydney.
Accident investigators have appealed to anyone who finds propeller parts on Sydney's outskirts to come forward to help explain what went wrong.
The parts that fell off apparently did not cause further damage to the plane.
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