The first Australian P-166 was demonstrated to Connellan Airways at Alice Springs before being delivered to Papua New Guinea. While the P-166 had reasonable sales success in Australia, Connellan did not buy them. VH-PAP became VH-PNC in July 1961.
Withdrawn from use in 1966 after severe corrosion found in the airframe. It was caused by foam sprayed on the aircraft by an overzealous firefighter when its undercarriage collapsed on landing at Athens. It was not the only trouble during the delivery flight from the UK, where it had been G-APSJ. The late arrival of the aircraft in Australia cost the buyer a contract and led to legal action against the seller.
The fashions of rural Queensland in 1965. The Ansett group embraced the Piaggio P166 and they served with all the group's airlines. Ultimately running third-level air services with first-level airline costs saw Ansett withdraw from smaller towns in favour of commuter airlines started by air charter operators. The Fokker F27 became the smallest aircraft operated by Ansett.