* Balloon starts to fire crashes to the ground
* No survivors in the worst NZ aviation disaster in 33 years
* Investigation underway police notifier members (Dateline adds details and quotes, changes)
By Mark Coote
CARTERTON, New Zealand, Jan 7 (Reuters) - a balloon burst into flames and crashed in New Zealand on Saturday, killing all 11 passengers in the country of the worst air disaster in more than three decades.
Police said the balloon have cut off power lines appeared and caught fire before the crash in farmland near the town of Carterton, about 80 km (50 miles) northeast of Wellington on New Zealand's North Island.
"Unfortunately the pilot and 10 passengers on board not have survived," said Superintendent Mike Rusbatch Wellington District Commander.
The accident occurred just before 07: 30 (1830 GMT) in quiet, clear weather in a region known for hot-air balloon.
"I could not believe what I saw." There were flames licking at the side of the basket, right above the guy ropes, "said David McKinlay State television New Zealand."
When the flames reached the canopy, the balloon to the ground said McKinlay crashed.
"It was a great, long pencil-like flame perhaps 20 m (65 ft) long, towards the floor at a dreadful speed" he said.
Other witnesses reported, succeeding cries to hear and see, smoke and flame from the balloon before it hit the ground.
Rusbatch, said five couples out in the wider Wellington region, as well as the pilot on board were. Two victims had or fallen from the burning balloon, shortly before it crashed, said he jumped.
The names of the victims are police, who have sealed off from the crash site, not released until next of kin have been informed.
Local resident Sean Barnes said the pilot hopping, became known in the media as Lance.
"Everybody knew him, he brought a lot of people in the community to the top in the balloon the" Barnes of told of Reuters.
The accident was worst air disaster since an Antarctic New Zealand Erebus tourist flight crashed in Mt. in 1979, killing all 257 people on board.
"It's a very sad time for all the balloonist," said Martyn Stacey, President of the balloon Aviation Association of New Zealand.
"Total aviation-wise, ballooning is one of the safest forms of flying."
Transport Minister Gerry Brownlee, said that rules for commercial ballooning in New Zealand recently had examined.
"Experts find no lessons from the inquiries are improving safety for others in the future can help..." Brownlee said in a statement. (Writing by Lincoln firmly in Wellington;) Additional reporting by prophesy Kusjanto; (Editing from Andrew sky)
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