Parrot took off, everyone looking to the skies? (7)
I believe the answer is:
rosella
'parrot' is the definition.
(type of parrot)
'took off everyone looking to the skies?' is the wordplay.
'took off' becomes 'rose' (rose into the air).
'everyone' becomes 'all' (all people).
'looking to the skies?' says the letters should be written in reverse (in a down clue, letters go up - towards the sky).
'all' written backwards gives 'lla'.
'rose'+'lla'='ROSELLA'
(Other definitions for rosella that I've seen before include "Australian flyer" , "Parrot" , "Aussie bird" , "Australian parakeet" .)