Australian authorities have so far rescued 219 survivors in what prime minister Julia Gillard called a “major tragedy”.

According to reports, the ferry disaster was caused by bad weather and the  MV Rabaul Queen went down while travelling between  Kimbe, New Britain, and Lae on Papua New Guinea’s main island.

More than  100 passengers, including students and teachers, are feared to have  drowned.

After the ferry sent a distress signal, Australia – which ruled Papua New Guinea as a colony until 1975 – sent a plane, three helicopters and six ships to search area. authorities have confirmed that 219 survivors have been saved.

Rescue co-ordinator Captain Nurur Rahman said more than 300 people were on board the vessel but it was too early to say why the ferry went down.

“Our priority at the moment is to save lives, but it is an unusual occurrence,” he told AFP.

“We’ve had a few cargo ship mishaps before, but never a ferry.”

He said weather conditions were manageable, helping the rescue operation.

Gillard said loss of life from the ferry disaster would be high.

“This is obviously a major tragedy,” she said.

“We have been asked to provide assistance to Papua New Guinea and we are providing assistance to Papua New Guinea.”

Australian Foreign Minister Kevin Rudd said his country had offered assistance.

“Our hearts go out to those affected by the sinking,” he said.