hot air balloon has burst into flames and crashed in New Zealand, killing all 11 people on board in the country's worst air accident in more than three decades.

Police said the balloon appeared to have caught fire before crashing on Saturday into farmland near Carterton, about 80 km northeast of the capital Wellington on New Zealand's North Island.

"Sadly the pilot and 10 passengers on-board have not survived," Mike Rusbatch, wellington district commander superintendent, said.

The accident occurred in calm, clear and warm weather in a region well known for hot air ballooning.

Al Jazeera's Tarek Bazley reports.