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Flight QZ545 left Perth Airport around 6:30pm local time en-route to Denpasar when the drama unfolded.

Within minutes of take-off, passengers described hearing loud bangs and saw bursts of fire coming from the left engine.

“It was like an explosion,” one traveller told reporters. “You could see the actual flames – it happened about six times. At first we thought it was lightning.”

The cabin reportedly lost all lighting temporarily and alarms sounded throughout the aircraft.

“It was terrifying,” said another passenger. “The plane started going up and down. I really thought we were about to crash and die.”

The flight was diverted over the Indian Ocean and circled Rottnest Island for nearly an hour to burn fuel before executing a safe landing back at Perth Airport.

Fire crews met the plane on the tarmac, but all 108 passengers and six crew members disembarked without injury.

AirAsia confirmed the incident was a “precautionary turnback” prompted by an engine abnormality that was “swiftly stabilised” by the crew.

Engineering inspections are ongoing and the aircraft will return to service once cleared.

Passengers were rebooked on alternate flights, with many continuing their journey to Bali early Monday morning.

Indonesia AirAsia CEO Capt. Achmad Sadikin praised the crew’s swift response and reassured travellers.

“Our team was focused on minimising the impact of the disruption, and we thank our guests sincerely for their patience and understanding,” he said.