Few minutes after his departure from Port Hardy, the pilot informed ATC that the right engine failed and obtained the permission to return for a safe landing. To avoid any stall, the left engine power was increased to its maximum and the crew continued the descent in marginal weather conditions. The airplane landed at high speed and was unable to stop within the remaining distance, overran and eventually crashed against trees in a swampy area. All 51 occupants were evacuated while the aircraft was written off.
Probable cause (official findings): The right engine failed because of a fatigue fracture of the reduction drive ring gear necessitating feathering of the propeller. Due to the presence of a fog bank, a steep approach was necessary with result that the landing was made at a higher than normal airspeed which, coupled with reduced braking action on the wet runway, caused the aircraft to overrun the landing area.