About 13:50 Alaska daylight time, a float equipped DeHavilland Otter was damaged when it struck terrain at the edge of a lake about 30 miles west of Port Alsworth. The four on board were not injured as the Part 135 flight attempted to take off from the 2,000-foot long lake. The pilot began the takeoff run with the flaps halfway extended, and then when the airplane was on the step he inadvertently retracted the flaps instead of extending them. The airplane did not get airborne, the pilot retarded the power lever to idle, and the airplane struck the four feet high bank at the end of the lake.
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