Virgin Australia has urged passengers to keep power banks in sight during flights after a suspected midair lithium battery fire in an overhead locker.

On Monday, a fire broke out on flight VA1528 from Sydney to Hobart as the plane began to land.

Passengers reported smelling smoke, and when cabin crew opened the overhead compartment, they found a lithium battery on fire.

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The crew extinguished the fire before landing, and the bag containing the battery was removed once the plane was on the ground.

No injuries were reported, and passengers disembarked safely after the aircraft landed at Hobart Airport.

The airline believes the fire was caused by a power bank in a passenger’s bag.

A Virgin Australia spokesperson said an investigation began immediately.

“We have immediately initiated an investigation into the cause of a small fire originating from a passenger’s carry-on luggage in an overhead locker during descent on flight VA1528 on Monday (21 July),” the spokesperson said.

“This investigation, conducted with the Australian Transport Safety Bureau (ATSB) and Civil Aviation Safety Authority (CASA) is ongoing.

“Any relevant findings from this investigation may inform permanent changes to our battery policy to ensure the safety of our guests and team members.”

Following the incident, the airline is reviewing its policy on passengers having and using power banks on board flights.

Passengers have been asked to keep power banks within sight and easily accessible throughout the flight, and are also encouraged not to use them to charge devices while on board.

Under the airline’s existing policy, all guests must carry power banks in the cabin.

Peter Carter, an aviation lawyer and director of Carter Capner Law, said airlines need to take stronger steps to protect passenger safety.

“When it comes to serious on board incidents ultimately the airline is responsible for any resulting injuries, including smoke inhalation,” he said.

“Perhaps the airlines need to ask more questions and do more when it comes to on board safety.

“Given this could have erupted into a dangerous blaze very quickly, aviation authorities should be putting this incident under the microscope.

“While this is a pretty rare circumstance I have no doubt ATSB and CASA will turn their attention to this incident and we should trust their assessment on what should happen going forward.”

Power banks are portable battery chargers designed to power devices on-the-go.

They use rechargeable lithium-ion or lithium-polymer batteries that are highly flammable, can explode or vent toxic gas, said the Australian Competition and Consumer Commission.