1a you must have been sound asleep when Compass 1 was around.
It was not shut down by 'bankruptcy'. It was shut down by the Hawke Federal Government for alleged non/under-payment of disputed airways fees, just before the peak travel peiod of Christmas (when the airline would have made millions). The subsequent complex court case ragarding those fees wasn't resolved for years and the matter certainly wasn't decisive enough to warrant the Government shutting down the airline.
The real reason Compass was targeted was that it was hurting Ansett (owned by the PM's mate); a basket-case airline which in any case eventually succumbed to the inevitable.
So holding our heads high in Australia and suggesting we are the epitome of free-market trade and fairness is naieve in the extreme.