A fuel leak has been identified as the cause of a fire on a hot air balloon flying over Victoria last year.
An Australian Transport Safety Bureau investigation found a fuel leak in one of the balloon's pilot burners ignited the fire after it departed Wandin, east of Melbourne, on Boxing Day last year.
The pilot was unable to control the fire because the fuel tank outlet and burners weren't shut off after the balloon caught alight, the investigation found.
"Pilots experience a high workload during in-flight emergencies," ATSB executive director of transport safety, Nat Nagy, said in a report on Friday.
"However, in the event of an in-flight balloon fire, the first priority must be isolation of the fuel supply at the fuel tank.
"In addition, it is good practice to rehearse emergency procedures by standing in the basket to run through the checklist steps."
Despite efforts to douse the initial fire on the journey to Coldstream, it reignited twice and also ignited the pilot's compartment.
As the pilot tried to land the balloon, the basket got caught in trees, cutting a passenger's hand, on the way down.
After landing, the passengers jumped to safety and by the time emergency crews arrived, the balloon was destroyed by flames.
Mr Nagy said wearing protective clothes, including cotton long-sleeved shirts and trousers, leather gloves and closed shoes, reduced the risk posed by fire.
Hot air balloon operators also needed to consider using systems with visual components, such as 90-degree valves on liquid outlets, he said.
The Kavanagh B-350 hot air balloon was carrying a pilot and 15 passengers on a scenic flight when it caught fire.
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