The Indonesian airline said contact had been lost with a Twin Otter small passenger aircraft travelling between Masamba and Makassar on the island of Sulawesi.
Ten people were on board the aircraft, Wisnu Darjono, an official at Indonesia's flight safety agency said.
He confirmed authorities had lost contact with the aircraft.
The plane went missing just several hundred miles north of the search area for MH370.
Aviastar flies domestic routes.