Armstrong Whitworth Whitley Mk VIIArmstrong Whitworth Whitley in flight c1940

The Incident:

In the early morning, a Whitley aircraft took off from Reykjavík for a convoy patrol south of Iceland.
The Whitley did not find the convoy and turned back to base. At about 11:00 hours the right engine temperature was rising and the engine was leaking cooling liquid, and little later something burst in the engine and smoke was observed. A distress signal was sent when the aircraft was at 5000 ft. altitude. The depth charges were dropped and the crew prepared for the emergency situation.
Hudson aircraft was sent from Kaldaðarnes to search for the Whitley. When about 10 nautical miles south of Eyrarbakki the left engine failed and forced landing at sea was made at ca 100 meters distance from an Icelandic trawler, the Whitley sank within few minutes. The trawler rescued the crew of six from a dingy.

The Crew: 

The crew of six survived.

The Aircraft: 

Armstrong Whitworth A. W.38, Whitley Mk VII
Registration ID:
Serial no:
Operator: 612 (County of Aberdeen) Squadron RAF
The Squadron was operating in Iceland from 15 Dec. 1941 to 18 August 1942.
Detachment from 12 Sep. 1941 to 3 Oct. 1941.

Details on aircraft: WikipediaYoutube

Source: RAF 612 Squadron history