The Civil Aviation Authority last week launched an investigation into the maintenance of all 73 hot air balloons in operation in New Zealand after serious concerns were raised about the craft that struck powerlines before crashing into a paddock near Carterton on January 7.
Mr Marshall had earlier said it was premature to say if maintenance issues contributed to the accident, but evidence pointed towards substandard maintenance of the Early Morning Balloons Ltd balloon involved.
"Evidence gathered by our investigators suggests the balloon's maintenance may not have complied with civil aviation rules. When an aircraft is not maintained in accordance with those rules then it would not meet the standard for 'airworthy condition'."
But Allan Still, father of 19-year-old Alexis Still, who died in the accident with her boyfriend Chrisjan Jordaan, said it was a waste of energy to concern himself with the initial findings and his family were waiting for a final report, expected next year.
"Knowing the information now of course I would not have flown ... but I think we are probably happier to wait until the final outcome is released rather than diving into bits that are released on the way."
CAA spokeswoman Emma Peel said investigators were now making inquiries about how each balloon was being maintained to ensure safety standards were maintained.
But she said the balloons would not be grounded while the investigation was underway.
Mark Brown, boss of the Hamilton-based Kiwi Balloon company and a former friend of balloon pilot Lance Hopping, who died in the accident, would not comment on news of the alleged faults with the balloon.
But he said the nationwide investigation was probably a good idea.
The investigation into the disaster continues and an interim inquiry report describing what happened is expected within the next few months.
EVIDENCE SO FAR
* The manufacturer appeared to not be using the mandatory "grab test" to test the strength of the material that makes up the part of the balloon holding the hot air.
* The required procedure for inspecting the balloon's burners and liquefied petroleum gas fuel system was not followed.
* The balloon logbook did not show that all the necessary airworthiness orders for balloons in New Zealand had been assessed.