The flight took off at Santa Teresa Road, 29 kilometres south east of Alice Springs. The accident was the result of a mid-air collision at 6:38 am, local time. One balloon ascended, colliding with another balloon above it. The
envelope of the lower balloon engulfed the basket of the upper balloon, causing a tear in the envelope. The lower balloon hovered briefly, before rapidly deflating and plunging to the ground at high speed, killing its pilot and all twelve passengers. One body was reportedly thrown clear of the basket. The pilot had turned off the
gas burners before impact. The male pilot and ten of the passengers were Australian. Six of the passengers were male and six female. One male passenger was
Danish and another male passenger was an
Italian who lived in Monaco. All of the passengers were adults. The descent reportedly lasted 51 seconds. Witness statements said the balloon "folded and fell to earth" and that it "fell to the ground like a streamer". A tourist in another balloon said, The tear in the stricken balloon's red and black envelope was described as being the size of a bed sheet, and the balloon crashed between two small trees in open scrubland about 16 kilometres from
Alice Springs Airport. Another news report said that ten bodies, arms interlinked, were found in the balloon's gondola. Three others were nearby in the sand, having apparently been ejected. Four balloons were in the air at the time of the accident. The pilot of one of the other balloons had made a radio call to alert the emergency services. Passengers of the other balloons were treated in hospital for shock on their return to Alice Springs. ==Investigation==