I initially thought this was a repeat of the Gulf Air A320 crash in Bahrain in 2000 but having read the report in the Avherald I now have my doubts.
Following is from the Avherald coverage of the loss.
"An Air New Zealand Airbus A320, registration ZK-OJL (D-AXLA), on a test flight with 7 people (2 Germans, 5 New Zealanders) on board crashed into the Mediterranean Sea off the coast near Perpignan (France) at 16:46 local (15:45Z), approximately 7km (3.8nm) before Saint-Cyprien.
The airplane had taken off Perpignan's runway 15 for a test flight at around 16:30 local (15:30Z), when it disappeared from radar. Coast Guard patrol boats as well as a helicopter by the Navy found floating parts, the airplane itself is reported sunken. Two bodies were recovered, five occupants are still missing.
XL Airways Germany said, they don't know exactly what happened. Their aircraft D-AXLA was to be transferred to Air New Zealand. The airplane came out of the maintenance and was to be verified. Originally XL Airways received the information, that the airplane had successfully ditched until the news of the crash arrived. Two German employees of XL Airways were on board as well as 5 New Zealanders. The airplane was already back in Air New Zealand colors with the original Air New Zealand interior restored. The airplane should have returned to New Zealand in December. "