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The story
Founded by Richard Branson in 2000.1
Early years as Virgin Blue (2000–2006)
Virgin Australia was launched as Virgin Blue, a low-cost airline, in August 2000, with two Boeing 737-400 aircraft, one of which was leased from then-sister airline Virgin Express. Initially offering seven return flights a day between Brisbane and Sydney, this was expanded to cover all major Australian cities and many holiday destinations. The Virgin Blue name was the result of an open competition; it was a play on the predominantly red livery and the Australian slang tradition of calling a red-headed male 'Blue' or 'Bluey'. This term has been used by the older generation, also known as the boomer generation.
The timing of Virgin Blue's entry into the Australian market was fortunate as it was able to fill the vacuum created by the failure of Ansett Australia in September 2001. Ansett's failure allowed Virgin to grow rapidly to become Australia's second domestic carrier rather than staying just a cut-price alternative to the established players. It also gave Virgin access to terminal space, without which growth would have been significantly limited. Delays in negotiating access to the former Ansett terminal at Sydney Airport however, forced Virgin to use its original terminal there—a collection of prefabricated buildings without aerobridges—longer than was needed. The airline's corporate and operations functions were located in its headquarters building at 112 Barry Parade in Fortitude Valley, Brisbane.
In May 2006, Toll Holdings acquired Patrick and became the majority owner of Virgin Blue. In July 2008, Toll sold its majority holding via a special dividend to hold 1.7% of the company. In June 2013, Air New Zealand owned 23% of the company.
Virgin Blue previously used a familiar formula pioneered by airlines such as Southwest Airlines and Ryanair of eliminating costs such as included in-flight meals and printed tickets in favour of selling food on-board and using telephone and internet booking systems. It also cut costs in the past by limiting the number of airports serviced and by operating one type of aircraft, the Boeing 737. This strategy changed with the introduction of a second type into the fleet. The airline ordered 20 Embraer E-jets, in a mix of six E170s and 14 E190s. These were ordered specifically so that the airline could re-enter the Sydney–Canberra market that it abandoned in 2004, and to fly to less populous areas. The first E170 arrived in Australia in September 2007, and by the end of the year, the three on initial order had been delivered. These were placed on limited-frequency services before full-scale operations were launched on 4 February 2008 with services from Sydney to Canberra (branded as 'Capital Jet' services), Mackay in Queensland, and the New South Wales regional centres of Port Macquarie and Albury, which were promoted with a one-cent fare. The flights to Canberra and the regional centres signified an effort to compete more directly with Qantas and its subsidiary QantasLink operation, which flies to all three cities, and with independent Regional Express Airlines.
Codesharing and network consolidation (2006–2010)
When Virgin Blue launched in 2000, it did not have interline or marketing alliances with other airlines. This changed after the collapse of domestic competitor Ansett Australia, when Virgin Blue began a codeshare agreement with United Airlines, enabling United passengers to connect from the United States to Virgin Blue's Australian destinations not served by United.
In 2006, Virgin Blue began forming partnerships to compete with Qantas. It established frequent flyer agreements with Emirates, Hawaiian Airlines, and Malaysia Airlines. The airline also had an interline agreement with Regional Express Airlines for access to smaller regional centres in eastern Australia, and operated two routes in Western Australia through Virgin Australia Regional Airlines.
In November 2007, Virgin Blue announced an agreement with Garuda Indonesia, allowing domestic passengers to transfer to international Garuda flights from Perth, Melbourne, Sydney, or Darwin. A similar agreement was later made with Vietnam Airlines, providing connections from Melbourne and Sydney to destinations in Vietnam via its network.
In 2008, business class was introduced throughout its entire fleet. New seating was installed in the first three rows of the cabin. These could be converted from three seats in economy configuration to two seats for premium economy. The premium product offered priority check-in, larger baggage allowance, lounge access, priority boarding, increased legroom and all-inclusive in flight entertainment, meals and beverages on board. The product was aimed at business and corporate customers. The airline began charging economy-class passengers for checked baggage in September 2008. The airline further announced its intention to operate Airbus A330 aircraft between Perth and the East Coast, starting in May 2011.
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In December 2010, Virgin Blue entered into alliances with Etihad Airways and Air New Zealand for code-sharing, reciprocal lounge and frequent flyer access and other co-operational projects. Virgin Blue also entered into talks with Delta Air Lines about the possibility of joining SkyTeam, one of the top three alliances in the world, as V Australia and Delta sought approval for an agreement between the two airlines to co-operate on trans-Pacific services. The agreement was rejected by the United States Department of Transportation under United States antitrust law. Upon review the agreement was approved by the United States Department of Transportation on 10 June 2011.
On 20 January 2011, Air New Zealand announced it would take a shareholding stake of between 10% and 14.99% in Virgin Blue. Air New Zealand chief executive Rob Fyfe described the investment "as part of Air New Zealand's strategy to develop scale and reach in this region" but said the airline had no intention of making a full takeover.
Launch of V Australia (2008–2011)
In early 2006, Virgin Blue announced its intention to operate up to seven flights a week to the U.S. through either Los Angeles or San Francisco. At the time, only Qantas and United Airlines competed in the Australia-US transpacific market. The airline was given permission for ten flights a week to the U.S. by Australian regulators on 24 July 2007. The plans were approved by US regulators on 15 February 2008, due to the signing of an open skies agreement between Australia and the US. Instead of using its existing brand, Virgin Blue launched a fully owned subsidiary with a separate Air Operator's Certificate, named V Australia as the result of a public naming competition, with a fleet of five specifically branded 777-300ERs.
The airline launched flights between Sydney and Los Angeles in 2009, followed by flights from Melbourne and Brisbane after obtaining permission to operate an unlimited number of flights between Australia and the U.S. by the Australian International Air Services Commission. V Australia also applied to the United States Department of Transportation to operate services to San Francisco, Seattle, Las Vegas, and New York, but these plans never materialised. V Australia later launched flights to Nadi International Airport, Phuket and Johannesburg (all of which were discontinued prior to the brand being absorbed into Virgin Australia, although Virgin Australia continued to operate to Phuket until 2015, and to Nadi), and Abu Dhabi to consolidate Virgin Blue's codeshare agreement with Etihad Airways.
Reorganisation and rebranding (2011–2019)
On 7 May 2010, Brett Godfrey officially stepped down as Virgin Blue CEO after steering the company through its first 10 years. John Borghetti, former Qantas executive general manager, took over as the new Chief Executive. Following Borghetti's arrival as CEO, a number of key Qantas staff moved to Virgin Blue while key Virgin Blue staff departed the airline, causing much speculation regarding a forthcoming rebrand or reorganisation of the airline. In February 2011, the re-brand was confirmed when the airline announced that the word 'Blue' would be dropped from its name as part of a campaign to attract more business travellers away from rival Qantas. This came shortly after the unveiling of new crew uniforms and business-class seats. The airline stated that the re-brand would proceed in stages and would reportedly include a new fleet livery and the renaming of the other Virgin Blue Group airlines as well.
On 4 May 2011, the former Virgin Blue revealed its new name, Virgin Australia, as well as its new livery. In addition to the new name, branding and livery, the airline also showed off its new flagship, the Airbus A330, with new domestic business class. Boeing 737 business class seating was also revealed, to be introduced on all of Virgin's jet aircraft by the end of 2011. Pacific Blue and V Australia were both folded into the new Virgin Australia brand, following an agreement with former Virgin Atlantic shareholder Singapore Airlines, which ever since the establishment of Virgin Blue in 2000 had previously prohibited use of the Virgin brand outside Australia.
Early in 2011, it was announced that Virgin Blue had signed a ten-year deal with Perth-based regional airline Skywest Airlines, for Skywest to operate up to 18 ATR-72 turboprop aircraft leased by Virgin, in order to better compete in east coast regional markets served by QantasLink and Regional Express Airlines. The turboprops would supplement the existing Embraer E190s and replace the E170s, which would be phased out due to their being uneconomical on the routes operated by Virgin.
In October 2011, the Australian Competition & Consumer Commission (ACCC) approved a proposed code-share alliance between Singapore Airlines and Virgin Australia, subject to other regulatory approvals in both countries.
On 31 May 2016, Chinese aviation holding company HNA Group agreed to purchase 13% of Virgin Australia Holdings for A$159 million, subject to authorisation from the ACCC, a stake which HNA Group ultimately intended to increase to 19.99%. The deal also created a codeshare partnership between Virgin Australia and Chinese airlines in which HNA Group held shares, on routes between Australia and China. Virgin intended to launch flights between Australian destinations and Beijing and Hong Kong by 2017 to consolidate the agreement.
By October 2016, Air New Zealand sold its remaining 2.5 percent stake for A$65.7 million to investors including the Nanshan Group. On 4 April 2018, Air New Zealand announced the end of the code- and revenue-sharing partnership with Virgin Australia, effective 28 October 2018.
On 12 June 2018, Virgin Australia CEO John Borghetti confirmed that he would leave the airline before the end of his contract in January 2020. Borghetti, who became CEO in May 2010, mentioned that his initial plans were to stay in the position for three to four years, however, the company's growth and success prompted him to stay on. In February 2019 Paul Scurrah was announced as Borghetti's successor, with Scurrah commencing as CEO on 25 March 2019.
On 2 July 2018, Virgin Australia launched a Sydney to Hong Kong service. It ceased on 2 March 2020 due to the COVID-19 pandemic.
COVID-19 impact and administration (2020)
On 18 March 2020, Virgin Australia CEO Paul Scurrah announced the grounding of the equivalent of 53 planes due to the ongoing COVID-19 pandemic, effective 30 March. This had the effect of temporarily returning Virgin Australia to being a domestic-only airline.
On 31 March 2020, Virgin Australia confirmed it had asked the Federal Government for a $1.4 billion loan to help it through the COVID-19 crisis. The airline said its bailout proposal was "subject to approval by the Virgin Australia Holdings board and the Australian Government" and "may or may not include conversion to equity in certain circumstances." Qantas responded by noting its revenue was three times higher than Virgin's, meaning that if Virgin was bailed-out, they should be given a $4.2 billion loan as to not distort the market.
On 4 April 2020, the Australian Government announced it would be subsidising a bare-bones international network operated by Qantas and Virgin Australia for four weeks in April. Virgin's began operating later that month to Hong Kong twice weekly and once weekly to Los Angeles. On the same day, it became known that Virgin Australia had decided to permanently shutter its New Zealand operation, resulting in 600 jobs in New Zealand to be lost.
On 9 April 2020, it was announced that all services, except one Melbourne-Sydney return flight six times a week, would be suspended from 10 April.
On 14 April 2020 Virgin Australia Holdings was granted a trading halt on the Australian Securities Exchange pending a company announcement or to start trading again on 16 April 2020.
On 16 April 2020, the Federal Government announced it would spend $160 million subsidising a minimum number of services operated by Virgin Australia and Qantas. The domestic minimal network announced is effective 17 April until 8 June 2020 and involves 64 flights weekly. It serves Brisbane, Sydney, Melbourne, Adelaide, Perth, regional WA and regional Queensland.
On 18 April 2020, the Queensland Government offered $200 million to help bail out Virgin Australia, however, the bailout had a number of conditions including Federal Government backing, debt restructuring, shareholders and bondholders contributing, headquarters remaining in Brisbane and ongoing regional flights.
On 21 April 2020, Virgin Australia confirmed it had gone into voluntary administration, citing its inability to continue operations without a Federal Government bailout. However, there are no changes being made to which flights are being operated.
Virgin Australia Holdings, Ltd. and 39 affiliated debtors filed Chapter 15 bankruptcy in the United States District Court for the Southern District of New York. The primary case is #20-11024.
Restructuring and post-pandemic period (2020–2025)
In June 2020, the airline was included in the purchase of Virgin Australia Holdings by Bain Capital.
In August 2020, Bain Capital announced the plan for a new 'Virgin Australia 2.0', signalling that the move was more focused towards streamlining and refocussing Virgin Australia, rather than a complete overhaul. The announcement included the immediate retirement of the remaining ATR, Airbus A330 and 777 fleets, in addition to the retirement of the Tigerair brand.
On 15 October 2020, as a result of numerous restructuring measures by Bain Capital, Virgin Australia CEO Paul Scurrah announced that he would resign. Jayne Hrdlicka was announced as Scurrah's successor, with Hrdlicka commencing as CEO on 18 November 2020.
On 15 December 2021, Virgin Australia and United Airlines announced a new partnership beginning in April 2022. This brought an end to the Delta Air Lines partnership after over a decade.
In September 2023, it was reported that Virgin Australia had been affected by the false-certification scandal plaguing London-based AOG Technics, with two Boeing 737-800s temporarily put out of service after the airline became aware that the engines had been fitted with unauthorised parts. VH-VUT was fitted with an unauthorised low-pressure turbine blade, whilst VH-YFR was fitted with an unauthorised seal for an inner high-pressure turbine nozzle.
On 10 October 2023, Virgin Australia announced it had returned to profitability for the first time in eleven years, reporting a profit of $129 million. Revenue more than doubled compared to the prior year to $5 billion as the company responded strongly to increased customer demand following COVID-19.
On 1 May 2024, the Australian Competition & Consumer Commission (ACCC) voted in favour of supporting a proposed agreement of reintroducing a codeshare agreement between Air New Zealand and Virgin Australia. In June 2024 this was granted formal approval. However, this codeshare is limited in scope to specific trans-Tasman routes into Auckland, Wellington and Christchurch.
In October 2024, Qatar Airways agreed terms to purchase a 25% stake in Virgin Australia. After receiving clearance by the ACCC and Foreign Investment Review Board, the deal was approved by the Treasurer of Australia in February 2025.
In February 2024, Jayne Hrdlicka announced her intention to resign as Virgin Australia's CEO. In March 2025, Virgin Australia announced that incumbent Chief Commercial Officer Dave Emerson, would replace Hrdlicka as CEO.
Relisting on the ASX (2025–present)
In preparation of relisting on the ASX, Peter Warne was appointed Chairman of Virgin Australia Holdings, replacing Ryan Cotton. The company relisted on the ASX in June 2025, with Bain Capital reducing its ownership to 40% and Qatar Airways to 23%.
From mid-October 2025, Virgin Australia is the first airline in Australia to allow small domesticated dogs and cats to travel in the cabin with their owners.
From Wikipedia’s article on Virgin Australia, shared under CC BY-SA 4.0.4