The 14-Sep-2001 collapse of Ansett Australia set the following decade for a series of rapid and momentous changes in Australian air transport, with effects felt globally. Few if any single airline collapses can have had the widespread and lasting impact of Ansett, although ultimately the Australian market benefitted from Ansett’s exit, which permitted unstable start-up Virgin Blue to secure a position and significantly reduce average air fares. Other floundering carriers in the world could have had a larger exit impact than Ansett - were it not for last-minute government-backed bailouts that demonstrated not so much decreasing liberalisation as perceived increasing political importance of airlines to their countries in a globalised world. The post-Ansett evidence suggests these attitudes may be misplaced.