Navy ships and air force planes have been scouring the waves since late yesterday afternoon, when the aircraft disappeared en route from the southern city of Myeik to the commercial hub of Yangon.
The commander-in-chief's office said 10 corpses, including five children, had been retrieved from the sea since a navy boat discovered wreckage from the plane early Thursday off the coastline near Dawei town.
Hundreds of locals, relatives and NGO workers endured an agonising wait on the rain-battered San Hlan beach accompanied by stony-faced soldiers, as helicopters flew overhead heading towards military vessels just visible on the horizon.
"My cousin's sister's family was in the plane crash - her husband, her child and herself," Kyaw Swar Myint, 44, from Dawei, told AFP.
"We heard news that the helicopter was now transporting about 20 dead bodies to the beach, so we are waiting here."
A military officer said the strong currents meant boats can not make shore, so many of the bodies may have to be airlifted to land.
More than half of the passengers were from military families, including 15 children, along with 35 soldiers and 14 crew members, the army chief's office said in a statement.
Some were travelling for medical check-ups or to attend school in Yangon.
The office of State Counsellor Aung San Suu Kyi posted a statement expressing its condolences to the victims and pledged to support the rescue teams.
It is monsoon season in Myanmar, but there were no major storms reported along the aircraft's flight path on Wednesday afternoon.
The military named the captain as "seasoned" pilot Lieutenant Colonel Nyein Chan, who it said had more than 3,000 hours of flying experience.
He was flying the Chinese-made four-engine turboprop, a medium-range transport aircraft based on the Soviet Antonov An-12, a widely used aircraft that has had numerous crashes over the decades.
Myanmar's former junta bought several Y8's during their 50 years of isolated rule, when they were squeezed by Western sanctions.
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