@Sjogre
 
That actually makes a lot of sense with Canterlot being a verticle city instead of an urban spread. (And the fact that cars don’t seem to exist on a large scale)
 
And since Canterlot is a city with a unicorn majority, magic could be used for steering, meaning the ballon could just be a ballon and basket, making them much cheaper then anything that would need steering or other equipment.
 
Had she used it before “Wonderbolt Academy” though?

Well, inside the library, of course.  
Usually, a deflated balloon dont take much space.

@QueenCold:
 
Dragonball dub reference?  
Dragonball dub reference.

The Twinkling Balloon was one of the first G4 playsets. It probably had to be worked into the show at the behest of Hasbro, just as the Friendship Express was later.

Have you SEEN that tree? There’s probably room in the top for storage.

@ Trickquestion
 
It was a gift from her parents. In other settings the rich kids get cars when they leave home, here they get balloons.
 
That’s my theory, anyway. She’s used it as personal transport whenever she or her friends need to fly, but aren’t on orders from Celestia.

@BP
 
It broke in the Mare Do Well episode. I doubt it’d go away forever.

The balloon broke to pieces anyway. Wonder if that means she won’t use it anymore.

The balloon isn’t rigid, and the basket isn’t that big. When deflated, it wouldn’t take up that much space.
 
What I want to know is if she has some kind of control spell on it. It doesn’t have any propellers, so it would usually just drift on the winds, but she and other pilots have gotten it to go to specific places and follow actual routes.

Wherever she damn well pleases. She’s Twilight Sparkle.

Dinocaps!

Why does Twilight even have a ballon in the first place? Everytime she’s traveled to Canterlot it has been by train or royal guard chariot. In fact, has she ever used it in an actual episode besides “Wonderbolt Academy?” I get the feeling it’s a hold over from Faust’s less slice of lifey vision of the show, but it’s no batmobile!

Packs up into the library’s canopy.

It’s not like it would stay inflated when not in use, I think it’s obvious that it breaks down into smaller pieces that she stores directly inside her rectum.
 
I mean basement…

It’s docked on top of the Library.
 
Invisibility spell.

she deflates it and keeps it in a garage thing.

magic! aint gotta explain shit

Underground hangar.