A father-of-two and aircraft engineer has been identified as the pilot of a plane that crashed and burst into flames on a suburban street in Melbourne’s south-east.

Anthony Lidell, 50, was flying a single-engine Cessna 172 and took off from Moorabbin Airport about 4pm yesterday.

About one hour later, witnesses reported seeing the aircraft make a turn, before crashing onto Scarlet Street in Mordialloc, on the boundary of Moorabbin Airport.

Anthony Lidell, 50, has been identified as the pilot of the plane that crashed yesterday. Picture: Facebook (Nine)

Witness video, shared to 9NEWS, showed the crumpled plane fully-alight in the middle of the street.

Mr Lidell, an experienced pilot, died at the scene and is being hailed a hero for steering the plane onto the road and away from nearby homes.

Friends have today paid tribute to Mr Lidell, laying flowers on the road at the crash site.

Witnesses reported seeing the aircraft make a turn, before crashing onto Scarlet Street. Picture: AAP (AAP)

A chief pilot from Aus Air Australia, who knew Mr Liddell for more than 30 years, told the Herald Sun he was a "meticulous" pilot.

"Anthony is one of the true gentlemen of aviation," Mr Guerry said.

"You could not wish for a nicer guy. I just can’t believe he is gone."

"Not only have his mechanical skills excelled, his piloting abilities have excelled because he's managed to hurt no one else," Mr Guerry said.

The father-of-two was an aircraft engineer and experienced pilot. Picture: Facebook (Nine)

Air Transport Safety Board (ATSB) investigators arrived at the scene this morning to begin probing the fatal incident.

When asked about how Mr Lidell managed to avoid landing the plane on homes lining the tightly-packed street, ATSB’s Nat Nagy said it was “very fortunate” but "wasn't a part of the probe".

"Our goal is to look at what happened in the lead-up to the crash," he said.

"We will be interviewing witness, the maintenance organisation and the owner of the aircraft.

Witness video, shared to 9NEWS, showed the crumpled plane fully-alight in the middle of the street. Picture: AAP (9NEWS)

Air Transport Safety Board (ATSB) investigators arrived at the scene this morning to begin probing the fatal incident. Picture: 9NEWS (9NEWS)

"It's important we gather all the facts before speculating."

Mr Nagy said there was no indication of engine failure at this stage.

He said the aircraft is expected to remain on the street for several days, before evidence is taken to Canberra for further investigations.

Friends have today paid tribute to Mr Lidell, laying flowers on the road at the crash site. Picture: Facebook (Nine)

Local woman Marianne told 9NEWS she heard a "huge bang" while she was watching television in her living room.

(9news)