What happened
The incident occurred during a climb out from Lae-Nadzab Airport towards the Huon Gulf. Shortly after takeoff, the right-hand engine ceased functioning, followed immediately by a failure of the left engine. With both power units inoperative, the pilot reduced altitude and executed a ditching maneuver into the water off Lae.
The aircraft came to rest near the vessel Tenyo Maru. All three occupants sustained injuries during the impact; one passenger reported that their seat belt snapped, causing them to be thrown forward with enough force to breach the cabin roof between two metal spars. The pilot remained in the cockpit initially but was eventually persuaded to move to the upper wing.
A local fisherman arrived promptly and rescued all three individuals from the water. While the occupants survived, the DH.84 Dragon sank and was subsequently lost.
Findings
Investigation into the event pointed to a double engine failure as the primary mechanical issue. The specific cause of the simultaneous loss of power was attributed to fuel contamination, likely resulting from water ingress into the fuel system.