RedactedNarrative: OPERATOR 1 WAS OPERATING VESSEL 1 WHILE CRUISING ON PLANE WHEN THE OPERATOR NOTICED THE SPEED OF VESSEL 1 SLOWING WITH THE THROTTLE AT 35%. AS OPERATOR 1 PULLED THE THROTTLE BACK THE OPERATOR NOTICED THE A/C HAD GONE OUT AND THE CIRCUIT BOARD SHOWED THE GENERATOR WENT OUT. THE OPERATOR THEN NOTICED BLACK SMOKE IN THE CABIN OF VESSEL 1. AS THE OPERATOR AND PASSENGER GRABBED LIFE JACKETS, THEY NOTICED THAT THE VESSEL BEGAN TO SINK. OPERATOR 1 AND THE PASSENGER WERE ABLE TO GET ONTO A PASSING VESSEL. THERE WAS NO INJURIES AND VESSEL 1 WAS A TOTAL LOSS DUE TO SINKING. VESSEL 1 SUFFERED A MECHANICAL FAILURE IN WHICH THE EXHAUST PIPE CAME OFF CAUSING VESSEL 1 TO FILL WITH WATER AND SINK.