A forensic photographer photographs the scene of a hot air balloon crash near Caterton about 70km (43 miles) north east of New Zealand's capital city Wellington January 7, 2012. [Photo/Agencies]

WELLINGTON - A hot air balloon crashed near New Zealand North Island town of Carterton on Saturday morning, killing all 11 people on board.

Police said first reports were received at 7:26 am Saturday. They confirmed there are multiple fatalities, Radio New Zealand reported.

Police, fire and ambulance officers are now at the crash site at Clareville.

Wairarapa District Health Board spokeswoman Jill Stringer said 11 people - all of those on board - died when the balloon came down near the Clareville showgrounds north of the Wairarapa town.

A Wairarapa ballooning website said the flight took off within the first few hours after sunrise and lasted for one hour.

The gondola can carry up to 10 passengers and the pilot.

A cyclist who witnessed the crash told Radio New Zealand that the balloon was in flames as it descended.