Ansett Australia, established in 1936, was Australia's pioneering commercial interstate airline, significantly shaping the country's aviation landscape. Over the years, the airline expanded its services, connecting remote areas to major cities. However, during the late 1990s and early 2000s, Ansett faced intense financial struggles, partly due to increasing competition from budget airlines and changing travel habits among consumers. The economic downturn following the September 11 attacks in the United States in 2001 further exacerbated the industry’s challenges globally, leading to decreased demand for air travel. This situation put immense strain on many airline operators, including Ansett.

In response to its financial woes, Ansett was grounded temporarily in September 2001 and attempted to restructure its operations. Despite these efforts, the mounting debts and inability to secure necessary funding ultimately led to its collapse in December. On this day, Ansett officially ceased operations after being unable to resume flights, resulting in approximately 10,000 employees losing their jobs. The sudden closure caused significant disruption in the airline sector, affecting not just the workforce but also the broader economy and the regional communities reliant on the airline's services for connectivity.