On July 22, 2008, about 1300 Alaska daylight time, a float-equipped, de Havilland DHC-3 Otter airplane, N61FE, sustained substantial damage when it struck a tree while landing on a road, following an emergency descent, about 4 miles north of Iliamna, Alaska. The airplane was being operated by Rainbow King Lodge Inc., Iliamna, as a visual flight rules (VFR) local flight, in conjunction with its guiding business. The solo commercial pilot was not injured. Visual meteorological conditions prevailed, and no flight plan was filed.

During a telephone conversation with the National Transportation Safety Board (NTSB) investigator-in-charge (IIC) on July 23, the pilot said he was scouting local lakes and rivers for fish. He said while returning to a float pond near the lodge, the airplane's engine lost oil pressure, and quit. The pilot said he descended to a road, and after touching the floats on the road, the left wing struck a tree, causing the airplane to depart the roadway. He said the airplane sustained damage to the wing's leading edge, and believed the wing might be bent aft. After examination by the pilot and an aviation mechanic, the pilot said the number eight cylinder had separated from the engine, pulling off an oil line. He said the engine had 19 hours since overhaul.