A B737-800's number one engine failed and caught fire at lift off. Engine failure procedures in mountainous terrain were executed followed by a landing 26 minutes later. The brakes melted during landing requiring that passengers be bussed to the terminal.

Narrative

Just as the aircraft nose came off the ground during liftoff; vibrations and sounds were heard and felt. The #1 engine had failed and was on fire. We flew the engine failure on takeoff procedure for that airport/runway. Executed the necessary checklist; return to the airport where a successful single engine landing was made. The aircraft was stopped on the runway. The passengers were deplaned by airstairs. No injuries or casualties were reported. No aircraft damaged was reported. Supplemental information from ACN 819259: 2 explosion like sounds at V1/liftoff and approximately 10-15 seconds later. #1 engine on fire at liftoff. Plane tilted to right; had trouble climbing. High elevation at takeoff; mountains surrounding airport; made emergency landing approximately 26 minutes after takeoff. Right landing gear/brakes smoking/melted together due to fast/abrupt landing. Aircraft at maximum cargo weight. Passengers stayed on board. Aircraft met by Crash Fire Rescue personnel. Passengers deplaned via airstairs after 2 hours onto busses.