Air date: October 4th, 2002 (UK)
It is summer holiday time on the Island of Sodor and holidaymakers are coming to visit the island. Thomas picks up a special to take to Dryaw Airfield. Thomas tells Percy it is a balloon, which Percy thinks is a party balloon, but Thomas corrects him, saying that it is a special balloon, and chuffs away.
Thomas arrives at the airfield and unloads his hot air balloon, which is starting to blow. James arrives and Thomas explains that the balloon is for taking holidaymakers around the island, but James is jealous because taking holidaymakers is a job for engines. He asks what will happen if the balloon takes their passengers and what will become of them. After hearing this, Thomas is not excited about the balloon anymore. The balloon is then seen by everyone on the island.
Later that day, Thomas and James are waiting at a crossing talking about the hot air balloon which ends up falling on top of James after it runs out of hot air. James, petrified, lets off a huge burst of steam, which inevitably blows the balloon up again. His driver cheers for him, but Thomas and James are upset that it will eventually take their passengers.
James arrives at Dryaw, where a lot of visitors and the Fat Controller are waiting. He praises James who is still upset about how the balloon will take their passengers. The Fat Controller laughs saying that he is right, but also tells him that the holidaymakers will need a ride home from a train. James is relieved, as the engines are now busier than ever taking holidaymakers to and from the airfield for balloon rides. Whenever James sees the red balloon, he whistles hello and sometimes when he is asleep, he wishes he could fly too, just like the red balloon.
This episode contains examples of:
- Go-to-Sleep Ending: This episode ends with James asleep in his shed, dreaming about the hot air balloon.
- Green-Eyed Monster: James is jealous of the balloon, thinking it will take away passengers from the engines. He grows out of it when the Fat Controller tells him he still gets to take the passengers home.
- Nice Job Breaking It, Hero: Thomas and James are stopped at a level crossing to let George pass, talking about the hot air balloon, when the balloon runs out of hot air and lands atop of James. A frightened James lets off steam, which blows the balloon back up again. Thomas tells James off for blowing the balloon back up, but James tells him that he didn't mean to.
- Not Even Bothering with the Accent: In the US dub, Alec Baldwin doesn't bother to give Donald and Douglas their Scottish accents when they see the balloon.
