At about 1717 Eastern Standard Time on 27 August 2007, a student pilot and an instructor in a Cessna Aircraft Company C172 (172), registered VH-TIX, were operating in the circuit area as the crew of a Boeing Company B737-838 (737), registered VH- VYC, was conducting a runway 01 instrument landing system (ILS) approach at Townsville Airport, Qld. The pilot of the 172 was cleared for takeoff and to make a right circuit on runway 07 from a position about 700 m along the runway. The 737 was about 1.2 NM from the runway 01 threshold and descending through 400 ft at that time.

The 737 landed on runway 01 and, as it crossed the extended centreline of runway 07, the pilot observed the 172 to pass in close proximity. Radar data and pilot estimates indicated that the 172 passed about 150 m behind the 737 at an altitude of about 100 ft. There was no separation assurance.

As a result of this incident, the local procedures at Townsville were amended to require the application of the Manual of Air Traffic Services (MATS) 4.8.9 Take-off Behind Landing or Departing Aircraft on Intersecting Runways separation standard between aircraft departing runway 07 and aircraft landing or departing runway 01/19 at Townsville. In addition, the Royal Australian Air Force (RAAF) implemented an audit project to examine the compliance of Australian Defence Force (ADF) air traffic services, instructions and procedures with civil requirements.