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The F-7 BGI aircraft crashed soon after it took off at 1:06 pm (0706 GMT) on Monday from the airbase in Kurmitola in the capital on a routine training mission. The military said the plane experienced a mechanical failure.
Sayedur Rahman, special assistant to the chief adviser on health, told reporters that 27 people had died and 88 were admitted to hospital with burn injuries.
The pilot was among those killed in the incident, the military said, adding that a committee had been formed to investigate what happened.