The 57-year-old Queensland man has been missing since his helicopter crashed in the Bismark Sea 36km south of Manus Island, in PNG's north, yesterday.
Pacific Helicopters owner, Mal Smith, who is also Eastern Highlands Province governor, said people were searching for the pilot on this morning and some wreckage had been found.
"He still might be alive. It's a hope by me," he said.
"I know he is a very fit person and there was a small nearby island he could have swum to, but at this stage it's just a hope," he said.
The experienced pilot was flying helicopters from the Eastern Highlands centre of Goroka to Manus for mining contractors, Mr Smith said.
He had been working in PNG's mining industry for about four years.
Mr Smith said that weather conditions were good and the sea was smooth when the helicopter went down.
"There was an emergency then a crash. Why? We just don't know right now."
A Department of Foreign Affairs and Trade (DFAT) spokeswoman said the Australian High Commission in Port Moresby was liaising with local authorities and Pacific Helicopters.
"DFAT in Canberra is providing consular assistance to the man's family," she said.
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