B737-700
Flight Crew Air Transport Pilot (ATP)
Flight Crew Last 90 Days 123; Flight Crew Type 8500
Aircraft Equipment Problem Critical
Flight Crew Returned To Gate; General Maintenance Action
Aircraft
On my initial Captain flight; we were cleared for takeoff prior to the hold short line. I powered up to 40% and; just passing the hold short line; the pilot in the aircraft behind us reported flames coming out of our engine. I stopped prior to runway centerline and shut down both engines. I asked the pilot behind us to confirm which engine and if the flames were still present. He said engine Number 1 and no flames were present at this time. I asked Tower to dispatch the fire trucks and invited a deadheading Captain to join us in the cockpit for his advice and experience. I started the APU. The fire chief inspected our engine and said there was no fire. We consulted the QRH for tailpipe fire. I started engine number two and we taxied to the gate while the fire crew followed us to monitor the condition of the engine. We stopped prior to the Safety Zone at the gate and had Maintenance inspect the engine. Maintenance reported a good engine. We continued to the gate and deplaned the passengers. The plane was taken out of service.  Check for pooling oil.
B737-700 Captain is informed as he takes the runway; by the pilot behind him that flames were coming out of the engine. Both engines are shut down with no more flames reported and the APU is started. After inspection by the fire crew the good engine is started and the aircraft is taxied back to the gate.