On October 30, 2004, about 1340 Alaska daylight time, N4851E, a tailwheel-equipped Champion 7FC airplane, sustained substantial damage during landing at the Talkeetna Airport, Talkeetna, Alaska. The airplane was being operated as a visual flight rules (VFR) local area instructional flight under Title 14, CFR Part 91, when the accident occurred. The first pilot, seated in the rear seat, a certificated flight instructor, and the second pilot, seated in the front seat, a certificated private pilot, were not injured. The accident airplane was owned by the second pilot. Visual meteorological conditions prevailed, and no flight plan was filed. The flight originated at the Talkeetna Airport, Talkeetna, about 1300. During a telephone conversation with the National Transportation Safety Board investigator-in-charge on November 1, the first pilot reported that she was providing flight instruction/recurrent training to the second pilot. The first pilot said that just after landing on runway 36, a dry, paved runway, the second pilot allowed the airplane to veer slightly to the left of the runway centerline. She said that she took control of the airplane in an attempt to realign the airplane, but the airplane ground looped to the left, and continued off the left side of the runway. The airplane's main wheels struck a snowbank, and the airplane nosed over. The airplane sustained structural damage to the wings, wing lift struts, fuselage, and empennage. Both pilots noted that there were no preaccident mechanical anomalies with the airplane.