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Passengers were thrown out of a hot air balloon after it was hit by a gust of wind causing it to collide with power lines next to a house as it was landing near Queenstown.
A police media spokeswoman said they were alerted just before 10am a hot air balloon had "possibly crashed or made an emergency landing" in Morven Ferry Rd.
There were reportedly 11 people on board the hot air balloon at the time.
St John communications adviser Gerard Campbell said two patients have been flown by helicopter to Dunedin Hospital with serious injuries, while nine have been taken by ambulance to Lakes District Hospital, one with moderate injuries.
St John Ambulance Central Otago territory manager David Baillie said the two patients with the most serious injuries had sustained internal bleeding, while the remainder of the patients had sustained "a range of minor fractures, bruises, etc".
The pilot was among those injured.
Mr Baillie said ambulances from Queenstown, Wanaka and Cromwell responded.
They were called to "an incident involving a hot air balloon, carrying passengers, which for reasons unknown has crashed and then been dragged through power lines into a house".
The power lines had been "managed effectively" by the relevant authorities, he said.
"The scene was spread over quite a distance, which is always difficult to deal with, however, we managed to mobilise our patients reasonably quickly."
Queenstown Lakes mayor Jim Boult said he had just been briefed by police.
Contrary to reports, he said the balloon was landing where it was supposed to land at Morven Ferry Rd, but on landing it was "hit by a gust of wind".
"Some people were thrown out of the basket, the balloon basket dragged across the ground until it hit a fence, and the remaining people either exited the basket or were thrown out of the basket," Mr Boult said.
"The balloon itself then came down on power lines attached to the house, but that had no effect on the people that were in the basket.
"On behalf of the community, I express our deepest sympathies to those involved, and we wish them all the very best for a speedy recovery."
Mr Boult had no information on where the passengers were from
He did not have any further details of their injuries.
The owner of the property where the hot air balloon crashed, Phillip Bunn, said the balloon ended up next to his house.
He was not home at the time, but his sister was and witnessed the crash leaving her very upset.
Balloons landed on their property quite often.
"I just feel sorry for the people on board."
He was still in the dark about what happened.
Mr Campbell said St John was notified of the incident at 9.54am following a 111 call from a member of the public.
Two helicopters, four ambulances, a manager and a first response unit were turned out.
A reporter at the scene said the balloon was lying on a paddock near the house.
St John staff were seen walking into the house.
There was a heavy police presence at the scene and the road had been cordoned off.
Sunrise Balloons, when contacted, said they had "no comment to make at this time".
A woman who saw the ill-fated hot air balloon moments before it crashed said it appeared to be coming down too fast and too low.
"I thought, 'that's coming down too fast' and seemed a little bit in distress."
She said it concerned her that it was so close to the ground in an area where it shouldn't be.
"Normally I see hot air balloons all the time on a winter morning and as I was coming back home from the school run I noticed the hot air flying quite low and didn't normally land in the Arrow Junction area. It looked like it was in a bit of trouble."
Another witness described the scene after the crash saying: "I can see a coloured balloon just among the trees."
The Transport Accident Investigation Commission (Taic) has opened an inquiry and appointed two investigators, expected to arrive in Queenstown late this afternoon.
A Taic spokesman said it was a "future safety-focused investigation''.
"The gathering of evidence and all of that takes as long as is necessary in order for the commission to reach findings and be able to make recommendations that are for the sector, rather than for the individual operator.''
One investigator was travelling from Christchurch and the other from Wellington - it was likely the investigation would start tomorrow morning, the spokesman said.
Power has been cut to 160 customers in the area the Gibbston and Arrow Junction areas on Morven Ferry Rd, Crown Terrace and McDonnell Rd according to Aurora Energy.
Power was cut at 10.18am at "the request of emergency services" and would be restored as soon as it was safe to do so.
Its website said power had been cut top 160 customers in the Gibbston Valley and Arrow Junction areas on Morven Ferry Rd, Crown Terrace and McDonnell Rd.
One Morven Ferry Rd resident, who asked not to be named, said the balloon had crashed just down the road from her.
"I’ve never seen so many police cars and fire engines and rescue cars zoom past.
"I can’t see any hot air balloon — there [was] definitely a helicopter there.''
She was one of the customers without power as a result of the crash.
Southland MP Joseph Mooney said he saw hot air balloons in the air near Queenstown most fine mornings.
"It's quite tragic,'' he said.
With NZ Herald