A flight bound for Tel Aviv was forced to make an emergency landing in Saudi Arabia after its co-pilot allegedly stabbed the captain and attempted to crash the aircraft.

Flydubai Flight FZ1073, a Boeing 737 travelling from Dubai to Tel Aviv, was carrying 174 passengers – including two Australians – when the incident unfolded on Wednesday morning.

The aircraft issued a distress call at about 8.44am local time, around two and a half hours after departing Dubai.

It subsequently lost thousands of metres of altitude in a matter of minutes, prompting fears among passengers and authorities that the aircraft was in serious danger.

Israel’s Prime Minister Benjamin Netanyahu said one of the pilots had stabbed the other before apparently attempting to bring down the aircraft.

The injured captain, identified as Indian national Smit Machchhar, was reportedly able to open the cockpit door despite being wounded.

Passengers and crew then rushed into the cockpit and overpowered the alleged attacker.

Additional pilots who were travelling on the aircraft subsequently helped regain control of the Boeing 737, which was diverted to Tabuk in north western Saudi Arabia and landed safely around an hour after the emergency was declared. Both pilots were injured during the confrontation.

Flydubai confirmed that an “altercation had occurred” on the flight deck but stressed that the circumstances and motive remained unknown and were subject to a formal investigation.

The UAE Attorney General has ordered a specialist investigation into the incident, including whether it was connected to terrorist activity, whether there was any prior planning and what motivated the confrontation.

Israeli officials have described the incident as a possible terrorist attack, while reports have identified the alleged attacker as an Omani national.

Passengers described scenes of panic as the aircraft descended rapidly, with several people helping to restrain the attacker and assist the wounded captain.

Captain Machchhar has since been praised for his actions in opening the cockpit and helping others regain access to the flight deck despite his injuries.

Flydubai has suspended its services to Israel while investigations continue. The passengers were subsequently transported from Saudi Arabia to Israel on replacement aircraft.

“Relieved to confirm at least two Australians who were on the Flydubai flight to Israel are safe – thanks to the heroes who thwarted the attack and helped bring the passengers to safety,” wrote Australian Foreign Minister Penny Wong on social media.