On September 28, 2003, about 0820 mountain standard time, a Balloon Works Firefly II, N7021U, sustained fire damage to the envelope while it was positioned on the ground near Phoenix, Arizona. Get Carried Away Hot Air Balloon Company was operating the balloon under the provisions of 14 CFR Part 91. The commercial pilot and nine passengers were not injured; two passengers sustained minor injuries. The balloon sustained substantial damage. The flight departed an area north of Phoenix about 0710 for the local area sightseeing flight. Visual meteorological conditions prevailed, and no flight plan had been filed. In a written statement, the pilot reported that one of the passengers became ill during the flight. After landing the balloon in a field, the pilot waited for the ground crew to arrive. While he was waiting, he applied heat to the balloon to keep it standing. Each time he applied the burner, he would look to ensure that it was not contacting the envelope. Just as the ground crew arrived, the pilot glanced at the balloon and began another burn. As he was speaking with the crew, the flame made contact with the envelope. The crew evacuated the passengers from the balloon as portions of the burning fabric fell. Several panels were directly burned; others were damaged by the melting fabric. The pilot noted that there were no mechanical problems with the balloon.