More than a dozen children were on the Chinese-made Shaanxi Y-8-200F transport plane travelling from the southern city of Myeik to Yangon carrying soldiers and their families.
News agency AFP reported that a search by navy ships and military aircraft was launched after the four-engine turboprop plane lost contact on Wednesday afternoon. AFP quoted a tourism official saying pieces of the damaged plane had been found in the sea 218km away from Dawei city.
The latest military update said the passengers included 15 children, 58 adults as well as 35 soldiers and officers on a regular weekly run to several coastal towns.
The update said the plane lost contact 29 minutes after take-off while flying at 18,000ft to the west of Dawei.
The plane was delivered in March last year and had since logged 809 flying hours, it said.
The Myanmar military has a chequered aviation safety history with several crashes in recent years.
