Virgin Australia is an Australian passenger airline serving domestic and short-haul international routes. Established in 2000 as Virgin Blue, it developed from a low-cost entrant into an airline combining business and economy travel with a substantial loyalty programme.[1][2]
Virgin Blue beginnings
Virgin Blue was founded by Brett Godfrey and Rob Sherrard with start-up capital from Richard Branson. It began with two Boeing 737 aircraft on the Brisbane–Sydney route in 2000. The new operation challenged the established Australian airline market with a low-cost business model. Velocity, its frequent-flyer programme, was introduced in 2005.[2]
Rebranding and expansion
The Virgin Australia name was introduced in 2011 as the business pursued a broader passenger market. The group expanded through interests in Tigerair Australia and the acquisition of Skywest, adding different operating models and regional capabilities. Its strategy increasingly included corporate travellers alongside leisure passengers, moving beyond the original Virgin Blue proposition.[2]
Administration and restructuring
Virgin Australia entered voluntary administration in April 2020 during the COVID-19 crisis. Bain Capital acquired the business in November. The restructuring retired the Tigerair Australia brand, ended the existing long-haul international operation and simplified the fleet. The relaunched airline positioned itself as a value carrier serving small businesses, cost-conscious corporate passengers and premium leisure travellers.[2]
Network and fleet renewal
Domestic services remain central to the airline’s published business profile, supplemented by short-haul international flying and charter operations. Velocity links the airline with international partners including Qatar Airways, Singapore Airlines, United Airlines, ANA and Air Canada.[1]
Boeing 737 aircraft have remained a central part of its fleet history. In March 2026 Virgin Australia unveiled a 737-8 in a commemorative Virgin Blue-inspired livery. The aircraft represented the 150th Boeing 737 to join the airline across its history, a cumulative milestone rather than a statement that 150 were simultaneously in service.[3]