Air Carriers Express Services

As the pilot and 16 jumpers departed on a skydiving flight, the engine lost power at approximately 300 feet agl. The aircraft then banked steeply left, spiraled in a steep nose down attitude and crashed. An exam revealed fuel in the tanks was contaminated with water and foreign material with the appearance of brown algae. Milky fluid (approximately 65% jet fuel and 34% water) was found in the engine fuel control, as well as iron contaminants. Dark stringy material was found in the fuel filters. The aircraft had been refueled from 55 gallons drums which contained contaminated fuel. The drums were stored upright and rain water could leak thru the filler caps. N551CC had a history of fuel contamination which on occasions caused the fuel bypass indicator to display. Reportedly, the stall warning circuit breaker had been disengaged on other occasions, so as not to startle the jumpers; however, due to damage, its preimpact position could not be verified. Aircraft was estimated to be 370 lbs over its max weight limit and 1 foot forward of the cg limit. The nine pax seats had been removed to haul up to 18 jumpers. Pax seat belts were not used. Lack of FAA surveillance was noted. All 17 occupants were killed.