A passenger onboard the hot air balloon that crashed in Arrowtown on Friday says he feared it would take off again without the pilot.

Malcolm Porter, of Dunedin, was one of 11 people on the Sunrise Balloons flight, which was hit by a sudden gust of wind just before landing and slammed into a small bank.

"To me, the first impact, I'd compare it to free falling in a lift and then stopping at the bottom. It was way more [violent] than I thought it would be," he says.

"We were dragged across the paddock for about 300 metres, took out a deer fence and then the balloon wrapped round a power pole and hit the house."

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Two passengers were thrown from the basket on impact, along with the experienced pilot Carrick McLellan.

"I heard one of the guys say 'the captain's gone', and I thought 'God, I hope we don't take off again'. That was what worried me.

"When we came to a stop it was all pretty quiet. Everyone was in shock. There was no screaming or yelling or anything."

Porter says the one-hour flight had been very calm and he hadn't felt any danger until the crash landing, shortly before 10am.

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The balloon had been going too fast to land in its usual spot, so had continued over a road and into the paddock, off Morven Ferry Road.

He estimates they were about eight metres (25ft) off the ground when they were hit by the gust of wind, which blew them into the low bank.

"We all got pounded into the bottom of the basket on impact, except those who were thrown out.

"When we were getting dragged across the paddock, we didn't think it was going to end, it just kept going."

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Coming to a stop near the house, the passengers slowly pulled themselves out, helping each other, before being guided into the house to keep warm.

"The lady from the house took some blankets out to the people still lying in the paddock, who weren't moving."

The paddock they were dragged across. Photo: Supplied

The trip was a birthday present for Porter's wife, and they were onboard with their sister and brother-in-law, of Invercargill, who all did not want to be named.

They all suffered relatively minor injuries, swollen knees, a broken finger and sore back. 

"My knees are all swelled up. I'm walking like a cowboy at the moment, but I'll be fine. My wife stayed the night in hospital with abdominal pain, they think it might be a bruised liver."

The two people thrown from the basket sustained internal injuries and were flown to Dunedin Hospital.

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The pilot sustained an arm injury, while another passenger in the basket suffered a broken ankle and the rest minor and moderate injuries. They were all treated at Queenstown's Lakes District Hospital.

Porter says pilot Carrick McLellan came to visit his wife, his arm in a sling, bringing her a card and chocolates for her birthday.

"I think he feels pretty bad, but what can you do?

"I've no ill will at all towards the company. You're in the lap of the Gods. It's a risk you take and he couldn't do anymore than he did."

That said, Porter says his hot air ballooning days are now behind him.

"That's one off the bucket list, but I think we'll leave it at that."

The basket. Photo: Supplied

The Transport Accident Investigation Commission has opened an inquiry into the incident.

Chief Investigator of Accidents Harald Hendel is appealing for witnesses.

"We're interested in hearing from people who saw the accident or observed the balloon near to the ground – particularly if you have photographed or captured the flight on video," Hendel says. 

Investigators have been in Queenstown over the weekend, recording the accident scene, recovering any remaining wreckage, securing electronic records – including photos, videos, and location data on people's cellphones – and interviewing witnesses, the pilot and Sunrise staff. 

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"We'll be looking at the balloon, basket and other elements of the aircraft, its individual and type history, performance, maintenance, design," Hendel said in a statement released on Saturday.

"The operating environment is also of interest, including physical, weather, operating company safety system, organisational culture, traffic control, regulatory matters."

Sunrise Balloons has operated for 23 years without incident.

The company has temporarily suspended operations and is co-operating with police, Civil Aviation and the Transport Accident Investigation Commission.

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Sunrise Balloons owner and chief pilot Hugh McLellan, Carrick's father, said the company is "deeply upset" about the incident and the injuries sustained to their staff and guests.

"We are fully supporting our staff and guests at this difficult time, and we wish all involved a full and speedy recovery," Hugh McLellan says.

"An internal investigation is underway and we are working closely with all relevant authorities."

Witnesses should email TAIC at [email protected].

The balloon. Photo: Supplied