Which style/tense is more appropriate to use when describing a sequence of events in the past?

When describing events in the past, I've seen two different styles used:

1. The plane caught on fire.
2. The plane crashed into the building.

(past tense)

1. The plane catches on fire.
2. The plane crashes into a building.

(present continuous?)

I think the second sounds more narrative and indeed I think I've seen it used more in documentaries. Which style is more appropriate to use in which contexts?

In your example, it really depends on what you want to say, as other have said, but here is something to consider:

Say you are writing a scene where a plane catches fire and the plane crashes into the building. The entire book/story/?? is written in past tense...then "The plane caught fire and crashed into the building"

But say you are writing a scene where some is listening to a recording or watching a video. Then you can write it either way:

1. Sally watched as the plane caught fire and then crashed into a building.

2. Sally watched the video. On the screen the plane catches fire and crashes into a building.

IMO: The second example takes the reader into Sally's mind as she views the video and makes her and the reader more "present." (pun mildly intended.)

Try writing the paragraph both ways and consider which one feels better to you (maybe get some feedback on each).