Footage taken from inside the basket showed one of the beams that connected it with the balloon had caught fire. A person can then be seen trying to douse the flames with an extinguisher. Six fire trucks responded and were able to put the fire out. Firefighters were still on the scene more than an hour later. Footage shows the charred remains of the balloon's basket scattered over a patch of burnt-out grass.

The yellow and red balloon is branded with the name of an Alice Springs-based company, Outback Ballooning, but is believed to have been bought by Coldstream-based company Go Wild Ballooning a few years ago. It is unclear at this stage what sparked the fire. A 27-year-old woman has been taken to Maroondah Hospital for observation. Emergency services remain at the scene. Credit:Nine News Police confirmed up to 15 people who were aboard the balloon evacuated the basket.

All are believed to be safe. A police spokeswoman said there were no reports of other injuries and investigators were probing the cause of the fire. Damien Crock, a spokesman for the Victorian hot-air balloon industry, said the pilot was extremely experienced and had been able to land "safely and calmly". "The pilot of this aircraft did an awesome job under really difficult circumstances," Mr Crock said.

He said he was unable to comment further on the incident, citing an ongoing investigation, but confirmed a report would be lodged with the Air Transport Safety Bureau. Loading Last week another hot-air balloon became tangled in a tree in Eltham in Melbourne's north-east. Three couples got engaged on that early-morning ride, before the balloon was caught by the tree. In February this year, seven people were taken to hospital after another Go Wild Ballooning hot air balloon landed heavily in Dixons Creek, 45 kilometres north-east of Melbourne, following extreme wind.

But Mr Crock said hot-air balloons remained one the safest types of aircraft available. He said pilots were put through rigorous training before being allowed to obtain their licence. Commercial balloon pilots and companies are also registered with the Civil Aviation Safety Authority, and companies must hold air operator certificates, which are renewed every three years following audits. "There can be technical issues with any type of aviation," he said. "But the safety record of the hot-air ballooning industry remains outstanding in Australia.