Accident Sequence
Shortly after departure from Alotau Airport, during initial climb, the aircraft experienced a fire and an explosion. It entered an uncontrolled descent and crashed into shallow water approximately two kilometers offshore. The aircraft was totally destroyed by impact forces. All 15 occupants were killed.
Investigation
The Australian Transport Safety Bureau (ATSB) conducted an investigation into the accident. The investigation determined that an explosion and fire occurred shortly after takeoff, leading to the failure of the electrical system.
Probable Cause
The fire's source was likely the terminal board between the inverters and a control relay. Kerosene carried in passenger luggage in the Twin Otter's aft cargo hold possibly began leaking and was possibly ignited by faulty or age-deteriorated electrical wiring. These factors are cited as the probable cause by the ATSB.