The pilot then reported that the second engine was also failing and the aircraft began to lose altitude by about 7,000ft , Venezuela's Interior Minister reported.
"Residents in the area said they heard an explosion," aviation official Francisco Paz said.
Martinique mourns
The reaction in Martinique was one of tremendous shock, with disbelieving relatives at the airport unable to contain their grief.
In France, president Jacques Chirac, has ordered a crisis centre to be set up for relatives of the victims.