Probe into Qantas 'loud bang' engine fail, runway fire

Smoke and flames were visible near a runway at Sydney Airport after the incident. (HANDOUT/ABC NEWS)

Investigations have been launched into how a Qantas plane suffered major engine failure on take-off, prompting an emergency landing and sparking a fire at Sydney Airport.

The incident sparked hours of chaos and delays until all runways returned to regular operations at 5pm on Friday.

Flight QF520 had taken off from Sydney, bound for Brisbane, just before 1pm when passengers reported hearing a loud bang near the aircraft's right engine.

The 737 was forced to return to the airport as plumes of smoke and flames billowed from a grass area next to the runway.

Qantas said the plane experienced a "contained engine failure" and the aircraft returned safely to the runway after circling for almost an hour.

“Our pilots are highly trained to handle situations like this and the aircraft landed safely after the appropriate procedures," chief pilot Richard Tobiano said.

"We understand this would have been a distressing experience for customers and we will be contacting all customers this afternoon to provide support."

Airservices Australia confirmed the fire next to the runway was the result of the engine failure.

"An engine failure on departure from Runway 34R caused a grass area adjacent to the runway to catch fire," a spokesperson said in a statement on Friday afternoon. 

Nine News producer Georgina Lewis, who was on board the aircraft, said she heard a loud bang before passengers were told an engine malfunction would force a return to the airport.

“We were going down the runway when we heard a loud bang … about 10 minutes later the pilot came on board and said they had a problem with the right-hand engine on take-off and they were forced to shut it down for safety reasons,” she told Sydney radio 2GB.

Sydney Airport later confirmed all runways were back open and the airport had returned to full operation.

The aircraft’s cockpit voice and flight data recorders had been quarantined, the Australian Transport Safety Bureau said.

Authorities will review operator procedures and weather information, and could examine engine components.

The flight crew could be interviewed.

“Our investigators will now work methodically to progressively establish the incident’s sequence of events and contextual information, with a view to determining contributing factors and any underlying safety issues, which will be detailed in the investigation’s final report," the bureau said.

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