The airplane sustained substantial damage at about 1140 Pacific time when it impacted terrain while maneuvering. The airline transport pilot occupying the front seat and the commercial pilot in the rear seat were killed. Visual conditions prevailed for the local flight. A witness about one-half mile south of the accident site observed the airplane circling overhead, followed by a constant, shallow rate of descent into terrain in a slight nose-down attitude. The airplane bounced once before impacting terrain a second time, followed by a cloud of dust and billowing smoke.