At 8.30pm, less than five minutes after take-off, one of its four engines made a loud banging sound while a flame appeared from its exhaust, according to the Aviation Herald.
The plane, a 12-year-old British Aerospace Avro RJ-100, was travelling at a ground speed of 230mph and at 5,000ft when the incident happened.
Flight data shows it had just crossed the M25 motorway in South Ockendon, Essex.
The pilots immediately shut down the engine and radioed for an urgent priority landing.
Instead of returning to City Airport, they were asked to fly at the same altitude to Stansted Airport in the north west of Essex.
It landed safely at Stansted at about 8.56pm when the flight was cancelled. Flight LX487, wbhich is popular with City bankers on business trips, had been on its way to Basel in Switzerland.
The 82 passengers were then taken by bus to Heathrow Airport for another flight. The Air Accidents Investigation Branch today said it was “aware” of the incident and is “considering how to proceed”.
A spokeswoman for London City Airport, which faces a campaign from nearby residents’ who are worried about the increased noise and danger from its expansion plans, said she did not wish to comment.
A spokeswoman for Swiss European Air Lines said:"The reason for the [engine] failure is now being investigated."
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