Virgin Australia

Virgin Australia

File:Virgin Australia logo.svg Logo used since 2011 rebranding
Company type	Private
Industry	Airline
Founded	August 29, 2000 (2000-08-29) in Brisbane, Queensland, Australia
Founder	Richard Branson, Brett Godfrey
Headquarters	South Bank, Queensland , Australia
Area served	Australia and limited international destinations
Key people	John Borghetti (CEO from 2010)
Products	Passenger air transport
Parent	Bain Capital (since November 2020)
Website	www.virginaustralia.com

Virgin Australia, originally known as Virgin Blue, is an airline based in South Bank, Queensland, Australia. It is one of the two operational carriers under the Virgin brand, alongside Virgin Atlantic, and boasts the larger fleet of the two. Established on 29 August 2000 by British businessman Richard Branson and former CEO Brett Godfrey, the airline commenced with just two aircraft servicing a single route. Following the 2001 collapse of Ansett Australia, Virgin Australia swiftly grew within the Australian domestic aviation sector. By blending features of both budget and full-service airlines, it achieved the status of the leading domestic airline by passenger market share as of December 2024.

By June 2025, Virgin Australia operated flights to 33 destinations across Australia using its fleet of Boeing 737 aircraft. Its main hubs include Brisbane, Melbourne, and Sydney, complemented by secondary hubs located in Adelaide and Perth. While offering a limited number of short-haul international flights, Australian legislation restricts majority-foreign-owned carriers from conducting international services. To navigate this limitation, Virgin Australia employs a 'shell corporation' arrangement for its international operations—an approach that is lawful yet debated within the aviation sector.

In 2011, the company transitioned from Virgin Blue to Virgin Australia, unveiling updated branding elements such as a refreshed livery, new staff uniforms, revised onboard menus, and introducing a business class product. This period also saw the acquisition of wide-body aircraft to directly challenge competitor Qantas, repositioning Virgin Australia as a more comprehensive service provider in both domestic and regional markets.

Financially, in 2018 Virgin Australia reported revenues amounting to A$5.4 billion with an operating profit of A$109.6 million. That year, its assets were valued at A$6.2 billion while equity stood at A$1.1 billion.

The COVID-19 pandemic severely disrupted operations, prompting Virgin Australia Holdings to enter voluntary administration on 21 April 2020. Subsequently, on 26 June 2020, private equity firm Bain Capital reached an agreement to purchase the airline through a sale deed with administrators Deloitte. Creditors endorsed this acquisition on 4 September 2020, with ownership officially transferring on 17 November. Following this takeover, Virgin Australia relaunched as a mid-market "hybrid" airline aiming to combine cost-effective operations with improved service quality.

Initial phase as Virgin Blue (2000–2006)

Virgin Australia's origins trace back to its launch as Virgin Blue, a low-cost airline, in August 2000 with two leased Boeing 737-400 planes—one leased from sister company Virgin Express. The airline initially operated seven daily return flights between Sydney and Brisbane before expanding service to key Australian cities and popular holiday spots. The name Virgin Blue was inspired by Australian slang for redheads and reflected its predominantly red color scheme.

Following the collapse of Ansett Australia in 2001, Virgin Blue exploited the resulting market void to rapidly ascend as Australia's second-largest domestic carrier, securing valuable terminal access rights despite delays in acquiring Ansett's Sydney terminal which necessitated continued use of less advanced facilities. The airline’s headquarters were situated in Fortitude Valley, Brisbane.

The fleet evolved with older Boeing 737-400 models being replaced by more fuel-efficient 737-700 and −800 variants equipped with modern glass cockpits and winglets.

Over time, Virgin Group reduced its ownership stake by initially selling half to logistics company Patrick Corporation, which launched a hostile takeover in 2005 and gained control of 62%. Virgin Group retained a minority stake of 25%. In May 2006, majority ownership passed to Toll Holdings following its acquisition of Patrick; however, Toll divested most of its shares by 2008. By June 2013, Air New Zealand held a significant stake amounting to 23%.

Virgin Blue adopted a low-cost operational model akin to Southwest Airlines and Ryanair by removing complimentary onboard meals and printed tickets while emphasizing bookings via telephone and online platforms. Initially operating solely Boeing 737 aircraft to reduce maintenance complexity and costs, the airline later diversified its fleet through an order for 20 Embraer E-jets (six E170s and fourteen E190s). This expansion facilitated re-entry into markets such as Sydney–Canberra and enabled service to smaller regional destinations.

The first Embraer E170 was delivered in September 2007; three units were received by year-end. Full-scale operations commenced on 4 February 2008 under the 'Capital Jet' brand serving Canberra, Mackay, and regional centers including Port Macquarie and Albury. These routes were designed to compete directly with Qantas and its subsidiary QantasLink, as well as independent regional carrier Regional Express Airlines.

Codesharing and Network Integration (2006–2010)

At its inception, Virgin Blue functioned independently without engaging in interline or marketing partnerships. Following the demise of Ansett Australia, the airline initiated a codeshare arrangement with United Airlines, enabling passengers from the U.S. to connect seamlessly to Virgin Blue’s Australian destinations beyond United’s existing routes.

Starting in 2006, Virgin Blue pursued collaborative alliances to compete more effectively with Qantas, establishing frequent flyer program partnerships with carriers such as Emirates, Hawaiian Airlines, and Malaysia Airlines. Additionally, it secured an interline agreement with Regional Express Airlines to enhance regional connectivity in eastern Australia and operated services within Western Australia through Virgin Australia Regional Airlines.

In November 2007, Virgin Blue entered into a partnership with Garuda Indonesia allowing domestic travelers to link with Garuda’s international flights from key Australian cities. A comparable arrangement was subsequently formed with Vietnam Airlines, connecting Melbourne and Sydney to Vietnamese destinations.

In 2008, the airline introduced Business class across its entire fleet, featuring convertible seats in the first three rows designed to attract corporate clientele by offering premium amenities including priority boarding and lounge access. That same year, economy passengers were required to pay fees for checked luggage. Virgin Blue also announced intentions to deploy Airbus A330 aircraft on routes between Perth and the East Coast starting in May 2011.

By December 2010, Virgin Blue had expanded its network through alliances with Etihad Airways and Air New Zealand, incorporating codesharing, reciprocal lounge privileges, frequent flyer program benefits, and other cooperative efforts. Negotiations with Delta Air Lines aimed at joining the SkyTeam alliance for trans-Pacific operations were initially denied by the United States Department of Transportation but received approval in June 2011.

On 20 January 2011, Air New Zealand acquired a minority stake of between 10% and 14.99% in Virgin Blue as part of its strategy to broaden regional influence without pursuing a full acquisition.

Introduction of V Australia (2008–2011)

In early 2006, Virgin Blue revealed plans to operate up to seven weekly flights on transpacific routes to the U.S., focusing on either Los Angeles or San Francisco. At that time, only Qantas and United Airlines served this market between Australia and the U.S. Australian authorities approved ten weekly flights in July 2007, followed by U.S. regulatory approval in February 2008 after an open skies agreement was established. Instead of operating under the Virgin Blue brand, the airline launched a wholly owned subsidiary named V Australia, equipped with five Boeing 777-300ER aircraft bearing its own branding.

V Australia commenced Sydney–Los Angeles services in 2009 and subsequently added Melbourne and Brisbane routes after securing unlimited flight rights from the Australian International Air Services Commission. Although applications were submitted for routes to San Francisco, Seattle, Las Vegas, and New York, these expansions did not come to fruition. V Australia also initiated flights to Nadi, Phuket, Johannesburg, and Abu Dhabi—the latter supporting a codeshare collaboration with Etihad Airways—but these routes were eventually discontinued.

Corporate Restructuring and Brand Transformation (2011–2019)

On 7 May 2010, Brett Godfrey concluded his decade-long tenure as CEO of Virgin Blue, with John Borghetti, formerly of Qantas, stepping into the role. Borghetti's arrival prompted several senior Qantas executives to join Virgin Blue, while some existing Virgin employees left, sparking rumors about a forthcoming rebranding. In February 2011, the airline officially announced it would drop "Blue" from its name to better appeal to business travelers previously loyal to Qantas. This transformation involved updated crew uniforms, enhancements to business-class seating, a refreshed fleet livery, and renaming of its subsidiary carriers.

Virgin Blue was formally rebranded as Virgin Australia on 4 May 2011, coinciding with the introduction of the Airbus A330 featuring an upgraded domestic business-class cabin. By the end of that year, business class was also rolled out across the Boeing 737 fleet. Subsequently, Pacific Blue and V Australia were consolidated under the Virgin Australia brand after an agreement with Singapore Airlines—former shareholder in Virgin Atlantic—which had previously limited the use of the "Virgin" name outside Australia.

In early 2011, Virgin Australia secured a decade-long partnership with Perth-based Skywest Airlines to operate up to 18 leased ATR-72 turboprop aircraft. This arrangement expanded regional service capabilities to better compete with QantasLink and Regional Express Airlines by complementing Embraer E190 jets and phasing out less fuel-efficient E170s.

The Australian Competition & Consumer Commission approved a proposed codeshare agreement between Singapore Airlines and Virgin Australia in October 2011.

On 31 May 2016, Chinese aviation giant HNA Group purchased a 13% stake in Virgin Australia Holdings for A$159 million, with plans to raise its ownership to 19.99%. This investment facilitated codeshare arrangements on routes between Australia and China operated by HNA’s airlines; Virgin Australia aimed to launch new services to Beijing and Hong Kong by 2017.

By October 2016, Air New Zealand divested its remaining 2.5% shareholding in Virgin Australia for A$65.7 million to investors including the Nanshan Group. On 4 April 2018, Air New Zealand announced it would terminate its code- and revenue-sharing partnership with Virgin Australia effective October that year.

CEO John Borghetti declared on 12 June 2018 his intention to step down prior to his contract expiration in January 2020, concluding nearly eight years of leadership since May 2010. Paul Scurrah was appointed as his successor in February 2019 and officially assumed the CEO position on 25 March.

Virgin Australia inaugurated its Sydney–Hong Kong route on 2 July 2018 but suspended this service on 2 March 2020 as a result of the COVID-19 outbreak.

COVID-19 impact and administration (2020)

On 18 March 2020, CEO Paul Scurrah announced that Virgin Australia would ground 53 aircraft starting from 30 March due to the pandemic’s severe impact, effectively reverting the airline to domestic-only operations temporarily.

By 31 March 2020, Virgin Australia sought a $1.4 billion loan from the Federal Government to manage the crisis, pending approvals from both its board and government authorities, with provisions for possible equity conversion. In response, Qantas emphasized that its revenue was triple that of Virgin’s and advocated for a bailout proportionate to market share in order to prevent competitive imbalance.

On 4 April 2020, the Australian Government provided subsidies for a limited international network operated jointly by Qantas and Virgin Australia over four weeks. Later that month, Virgin resumed twice-weekly flights to Hong Kong and weekly services to Los Angeles. However, on the same day, it permanently ceased all operations in New Zealand, resulting in approximately 600 job losses.

By 9 April, all flights were suspended except for a six-times-weekly return service between Melbourne and Sydney.

Virgin Australia Holdings was placed on an Australian Securities Exchange trading halt on 14 April pending further announcements.

On 16 April, the Federal Government allocated $160 million in subsidies enabling a minimal domestic schedule operated by both Virgin Australia and Qantas from 17 April through to 8 June 2020. This arrangement encompassed around 64 weekly flights connecting major metropolitan centers and regional destinations.

The Queensland Government proposed a $200 million rescue package on 18 April contingent upon Federal Government support, debt restructuring efforts, shareholder capital contributions, retention of corporate headquarters in Brisbane, and continuation of regional air services.

Facing liquidity challenges without Federal bailout assistance, Virgin Australia entered voluntary administration on 21 April while maintaining ongoing flight operations.

Additionally, Virgin Australia Holdings along with associated entities filed for Chapter 15 bankruptcy protection in the United States District Court for the Southern District of New York (case number 20-11024).

Restructuring and post-pandemic period (2020–2025)

In June 2020, Bain Capital completed its acquisition of Virgin Australia. By August, Bain unveiled a plan for a more focused 'Virgin Australia 2.0', emphasizing refinement over a complete transformation. This strategy involved phasing out the ATR, Airbus A330, and Boeing 777 fleets, as well as discontinuing the Tigerair brand.

Following these developments, CEO Paul Scurrah stepped down in October 2020, with Jayne Hrdlicka appointed as his replacement the following month.

In December 2021, Virgin Australia forged a new partnership with United Airlines, ending its ten-year alliance with Delta Air Lines.

In September 2023, two Boeing 737-800 aircraft were temporarily grounded due to the discovery of unauthorized engine components connected to the AOG Technics controversy.

On 10 October 2023, Virgin Australia announced it had returned to profitability for the first time in over a decade, posting a $129 million profit alongside revenues surpassing $5 billion, driven by robust demand following the COVID-19 pandemic.

By May 2024, the Australian Competition & Consumer Commission approved the reinstatement of a codeshare agreement with Air New Zealand, which was formalized in June 2024. This collaboration targets selected trans-Tasman routes including Auckland, Wellington, and Christchurch.

In October 2024, Qatar Airways agreed to acquire a 25% ownership stake in Virgin Australia; after receiving regulatory clearance, the transaction was completed in February 2025.

CEO Jayne Hrdlicka announced her resignation in February 2024 and was succeeded by Chief Commercial Officer Dave Emerson in March 2025.

Relisting on the ASX (2025–present)

Prior to Virgin Australia's relisting on the Australian Securities Exchange, Peter Warne succeeded Ryan Cotton as Chairman of Virgin Australia Holdings. The company returned to the ASX in June 2025, with Bain Capital reducing its ownership to 40%, while Qatar Airways held a 23% share.

Head office

Virgin Australia's headquarters were located at Virgin Village in Bowen Hills, Brisbane until relocating to South Bank, Queensland in September 2020. The A-grade office facility spanned approximately , under a triple net lease arrangement with Virgin Blue.

Originally, the airline’s headquarters were situated at 112 Barry Parade in Brisbane’s Fortitude Valley. Co-founder and former CEO Brett Godfrey remarked in 2006 that this location had been strategically selected and remained effective. Subsequently, Virgin Australia purchased a $61 million site in Bowen Hills for its new headquarters; this property had been acquired by Sunland Group for $8 million in 2005. The Virgin Village officially opened on 17 October 2008 and accommodated roughly 1,000 employees at that time.

Pacific Blue

Established in September 2003, Pacific Blue operated as a low-cost carrier providing flights between New Zealand and Australia. It aimed to compete directly with Air New Zealand and Qantas on trans-Tasman services and also operated flights under the Polynesian Blue joint venture with the Samoan government. Pacific Blue has since been integrated into the Virgin Australia brand and livery.

V Australia

At the beginning of 2006, Virgin Blue's parent company revealed intentions to launch up to seven weekly flights to the United States, routing through Los Angeles or San Francisco, aiming to boost profitability. The new airline was officially named V Australia on 25 July 2007.

Tigerair Australia

Virgin Australia Holdings purchased a 60% share in Tiger Airways Australia on 30 October 2012 for AUD $35 million, planning to operate it as a low-cost subsidiary over a 20-year period. By October 2014, Virgin acquired full ownership of Tigerair for a nominal sum of one dollar. Following Bain Capital’s takeover of Virgin Australia in 2020, Tigerair was put on hold and later ceased operations entirely.

Virgin Australia Regional Airlines

On 11 April 2013, Virgin Australia Holdings finalized the acquisition of regional airline Skywest Airlines, which was subsequently rebranded as Virgin Australia Regional Airlines.

Marketing and sponsorship

Since its foundation, Virgin Blue has engaged in numerous sports sponsorships to elevate brand visibility. In February 2007, it entered its first rugby league partnership by signing a two-year deal with the NRL club South Sydney Rabbitohs. To celebrate this collaboration, a Boeing 737-800 was repainted, replacing the "Virgin Girl" Australian flag with the Rabbitohs' emblem. Virgin Australia also supports the NBL and acts as the naming sponsor for the NBL team Brisbane Bullets.

In November 2010, Virgin Blue secured an AFL marketing contract valued between A$5 million and A$8 million, winning over rival Qantas.

The airline also generated extra revenue and brand exposure by converting two aircraft into "flying billboards," one advertising a men’s razor brand and another promoting a Queensland Government business attraction initiative; both planes have since been retired from the fleet.

The "Get What You Want" advertising campaign was launched in 2007 featuring Queensland band Operator Please. In 2009, the company introduced "Now there’s an idea," showcasing advancements in Australian air travel over ten years with music by The Cat Empire. Billboard advertisements focused on product diversity and punctuality.

Following the rebranding to Virgin Australia in 2011, the slogan was updated to "Now you’re flying."

Virgin Australia broadened its sponsorship portfolio to include AFL teams such as Gold Coast Suns (2011) and Greater Western Sydney Giants (2014). Since June 2017, it has been the guernsey sponsor for the Carlton Football Club, extending this partnership through to 2022. Additionally, in 2016 Virgin Australia acquired naming rights for an annual motorsport series, which was renamed the Virgin Australia Supercars Championship starting from July 1.

Awards

Throughout its history, the airline has received numerous awards. In 2009, it and several employees earned five service excellence awards from the Customer Service Institute of Australia. It was recognized as the best low-cost airline in the Asia/Pacific region by the Skytrax Airline of the Year Survey in 2002 and has continued to receive accolades across various categories from multiple organizations.

As an employer, Virgin Australia was honored as Australia's most attractive employer at the Randstad Award in 2015 and consistently ranked within the top three for five years running, including first place in 2011.

The airline’s frequent flyer scheme, Velocity Frequent Flyer, garnered several Freddie Awards in 2009 for best frequent flyer program, award redemption options, affinity credit card offerings, member communications, and website functionality—marking its fourth consecutive year winning. In 2018, Velocity earned Freddie Awards for program of the year, best elite program, customer service excellence, and redemption capabilities—achieving six straight years recognized for best redemption ability.

Destinations

On 11 December 2024, Qatar Airways revealed plans to begin accepting bookings for nonstop flights operated on behalf of Virgin Australia, connecting Sydney, Brisbane, and Perth with Doha starting in June 2025. Subsequently, Melbourne will be incorporated into this flight schedule later in the year.

Codeshare agreements

, Virgin Australia has established codeshare partnerships with the following carriers:

• Air Canada
• Air India
• Air New Zealand
• Air Mauritius
• All Nippon Airways
• Link Airways
• Qatar Airways
• Singapore Airlines
• South African Airways
• United Airlines
• Virgin Atlantic

Interline agreements

, Virgin Australia maintains interlining arrangements with the following airlines:

• Air China
• Air Niugini
• Air Tahiti Nui
• Aircalin
• Asiana Airlines
• Austrian Airlines
• Beijing Capital Airlines
• Cathay Pacific
• China Airlines
• China Southern Airlines
• Delta Air Lines
• El Al
• EVA Air
• Fiji Airways
• Garuda Indonesia
• Hainan Airlines
• Hong Kong Airlines
• KLM
• Korean Air
• Lufthansa
• Malaysia Airlines
• Pakistan International Airlines
• Philippine Airlines
• Royal Brunei Airlines
• Scoot
• Sichuan Airlines
• Solomon Airlines
• SriLankan Airlines
• Swiss International Air Lines
• Thai Airways International
• Tianjin Airlines
• T'way Air
• Vietnam Airlines
• WestJet
• XiamenAir

Current fleet

As of now, Virgin Australia operates a fleet exclusively comprised of Boeing 737 aircraft. This does not include the Airbus A320 and Fokker 100 planes flown by Virgin Australia Regional Airlines.

Virgin Australia fleet

Aircraft	In service	Orders	Passenger Capacity			Remarks
			J	Y	Total
Boeing 737-700	9	—	8	126	134	7 units acquired from KLM.
Boeing 737-800	5	—	8	162	170	Scheduled for retrofit to a 182-seat layout.
	28			168	176
	45			174	182
Boeing 737 MAX 8	10	13	8	174	182	Deliveries commenced June 2023.
Boeing 737 MAX 10	—	10	8	196	204	Anticipated delivery by late 2027.
Total	97	25

Initially, Virgin Australia leased the majority of its aircraft but has progressively shifted toward outright ownership. The Boeing 737s owned by the airline bear the Boeing customer code FE, whereas the former V Australia Boeing 777s carried ZG. To optimize capital expenditure, Virgin Australia incorporated pre-owned aircraft, including Boeing 737–700s sourced from KLM, which replaced the older Fokker 100s.

On 28 June 2023, Virgin Australia took delivery of its first Boeing 737 MAX 8, becoming the second Australian carrier to operate this model. After limited domestic deployment, the aircraft commenced international service on the Cairns–Tokyo Haneda route in July 2023.

Due to persistent supply chain challenges, on 13 September 2024 Virgin Australia converted twelve orders initially placed for the Boeing 737 MAX 10 into MAX 8 variants.

Former fleet

The following aircraft types have been retired from Virgin Australia's passenger operations:

Virgin Australia former fleet

Aircraft	Quantity Operated	Entry into Service	Retirement Year	Additional Information
Airbus A330-200	8	2011	2020	Two units transferred to Azul Brazilian Airlines.
Boeing 737-300	1	2001	2004
Boeing 737-400	6	2000	2003
Boeing 777-300ER	5	2011	2020	"V Australia" fleet originally. Retired earlier than planned due to the COVID-19 pandemic. Australia's sole operator of Boeing 777 passenger jets. Three aircraft transferred to Qatar Airways.
Embraer E170	4	2007	2012	Transferred to Compass Airlines.
Embraer E190AR 18 2008 2018

Fleet development

In November 2006, Virgin Blue placed an order for eleven Embraer E190 and three Embraer E170 jets, later increasing this commitment with additional E170 and E190 units. Another four E190 aircraft were ordered in February 2008. The first E170 was delivered in September 2007, featuring updated branding consistent with Virgin’s corporate image.

Virgin Australia assigns names to its planes inspired by Australian cities, beaches, and cultural motifs to strengthen brand identity. Examples include names like 'Brissie Lizzie' representing Brisbane, 'Sassy Sydney,' as well as coastal references such as Cable Beach and Bondi Beach. Each aircraft also displays unique nose art depicting an Australian-themed "virgin girl."

Premium economy seating was introduced across all domestic flights on 24 October 2007.

Long-haul international services began under the V Australia brand on 27 February 2009 but were fully reintegrated into Virgin Australia by December 2011.

On 10 January 2011, Virgin Blue entered a decade-long agreement with Perth-based Skywest Airlines (later renamed Virgin Australia Regional Airlines) to operate up to eighteen turboprop aircraft under the Virgin brand. On 23 February it was announced that these would be ATR 72 aircraft scheduled to enter service mid-2011, replacing Embraer E170s and expanding regional route coverage through a wet lease arrangement.

The initial ATR-72 routes connected Brisbane with regional centers including Gladstone, Port Macquarie, and Canberra. On 25 January 2012, capacity increased with new flights linking Brisbane to Proserpine, Rockhampton, and Cairns through wet leasing two Fokker 100 jets from Alliance Airlines. Service between Brisbane and Bundaberg commenced on 4 May 2013.

Orders

On 1 April 2010, Virgin Australia finalized a firm purchase agreement with Boeing for fifty 737–800 aircraft, including the option to switch some orders to either 737–700 or 737–900ER models. The deal also included 25 options and rights to acquire an additional 30 aircraft in the future. Deliveries were planned to continue through 2017. In July 2012, the airline placed an order for 23 Boeing 737 MAX 8 jets, scheduled for delivery between 2019 and 2021. By 2015, Virgin had converted 17 remaining 737-800 orders into the MAX variant, bringing its total MAX fleet commitment to 40 aircraft. In August 2018, it upgraded ten of its MAX 8 orders to the larger MAX 10 model, with deliveries expected to begin in 2022.

In April 2019, Virgin postponed some deliveries and converted 15 MAX 8 orders into MAX 10s, setting the timeline for MAX 10 arrivals from 2021 while deferring MAX 8 deliveries until at least 2025. However, further delays arose due to worldwide grounding and production halts following two fatal accidents involving the MAX series. By December 2020, Virgin cancelled its remaining MAX 8 orders, adjusting its commitment to only 25 MAX 10 aircraft with delivery pushed back to mid-2023.

In April 2022, CEO Jayne Hrdlicka announced a reversal of the earlier cancellation of MAX 8 jets, confirming that at least four (later increased to eight) MAX 8 aircraft would be introduced by February 2023 to replace older Fokker 100 planes within the regional fleet. Because of certification setbacks for the MAX 10, Virgin is unlikely to take delivery of these until early 2025 and is reportedly considering exchanging some MAX 10 orders back to MAX 8 variants. Alongside receiving its third MAX 8, Virgin also raised its total MAX 8 order from eight to fourteen units.

Cargo

Virgin Australia Cargo commenced operations in July 2015 following the conclusion of the airline’s contract with Toll Domestic Forwarding. In 2016, Virgin Australia secured a five-year freight agreement with TNT Express, initiating dedicated freighter services on July 4. Between 2016 and 2020, ASL Airlines Australia (previously Pionair) operated three BAe 146–200 freighters for Virgin Australia Cargo, while Airwork provided one Boeing 737–300F under a wet-lease arrangement. After Virgin Australia entered voluntary administration in March 2020, these contracts were terminated and the aircraft reassigned to other operators across Australia and New Zealand. The Virgin Australia Cargo brand continues to operate by transporting freight within the cargo holds of passenger flights.

Business

Business class is available on most jet aircraft operated by Virgin Australia, offering a seat pitch of on Boeing 737–800 models.

Economy X

Economy X provides an upgraded economy experience featuring additional legroom, priority access to overhead lockers (exclusive to Virgin Australia flights), priority boarding, and expedited security screening where available—all at a competitive price point.

Economy

Standard economy seats provide a seat pitch of . Select Boeing 737 aircraft are equipped with wireless in-flight entertainment systems.

Food and beverages

Passengers traveling in business class enjoy a full three-course meal prepared onboard, paired with a premium selection of Australian wines, beers, spirits, and non-alcoholic drinks including barista-style coffee.

In economy class, a buy-on-board menu is available offering food and beverages for purchase; complimentary non-alcoholic drinks are provided on all domestic and short-haul international routes.

In-flight entertainment

In 2006, Virgin Australia (then operating as Virgin Blue) collaborated with Australian cable providers Foxtel and Austar to launch the "Live2Air" service on selected Boeing 737 aircraft; this offering was gradually discontinued beginning in 2012.

The airline's Boeing 777-300ER and Airbus A330-200 fleets are equipped with the Panasonic eX2-based RED entertainment system, which provides passengers with touch-screen interfaces, a broad selection of video-on-demand content, music, games, seat-to-seat messaging, and flight details—all included at no additional cost.

December 2012 saw the rollout of an in-flight Wi-Fi system that streamed music, movies, and television programs directly to passengers’ personal devices. This technology was installed across the entire fleet within two years but did not offer internet browsing capabilities.

From 2018 onward, Virgin Australia enhanced its Wi-Fi service to enable internet connectivity on its Boeing 777 aircraft by the end of that year. The upgrade for Boeing 737 and Airbus A330 planes was projected to be completed by late 2019. However, regional aircraft such as Airbus A320s, ATR 72-600s, and Fokker 100s were not included in this enhancement.

After Bain Capital acquired the airline, in-flight Wi-Fi was temporarily suspended during a service evaluation led by CEO Jayne Hrdlicka, resulting in Qantas being the sole Australian airline providing internet access onboard at that period.

Virgin Australia has since restored Wi-Fi and streaming entertainment to all 737 MAX and outfitted 737-800 aircraft. Complimentary offerings encompass more than 400 hours of films, TV series, podcasts, e-books, and a basic flight map. Internet access is free for Velocity Platinum members and Business Class travelers; other passengers can purchase access for a fee.

Lounge service

To appeal to business travelers, Virgin initially launched a members’ lounge known as The Blue Room, which operated on a pay-as-you-go basis. Numerous lounges were established within former Ansett terminal spaces, repurposing the defunct Golden Wing club facilities.

In 2006, these lounges underwent refurbishment and were rebranded as The Lounge, offering all-inclusive entry through membership or casual fees. Enhancements included buffet-style dining, beverages, newspapers, shower amenities, computer stations, and Wi-Fi connectivity.

By May 2011, the lounges adopted the name Virgin Australia Lounge, reflecting a focus on delivering a premium environment with areas tailored for various activities and moods.

Current and former lounge locations include:

• Adelaide Domestic Lounge
• Alice Springs Domestic Lounge (closed)
• Brisbane Domestic Lounge
• Brisbane Beyond Lounge
• Cairns Domestic Lounge (closed)
• Canberra Domestic Lounge
• Canberra 'The Club' Lounge (closed)
• Darwin Domestic Lounge (closed)
• Gold Coast Domestic Lounge
• Mackay Domestic Lounge (closed)
• Melbourne Domestic Lounge
• Melbourne Beyond Lounge
• Perth Domestic Lounge T1
• Perth Domestic Lounge T2 (closed)
• Perth 'The Club' Lounge (closed)
• Sydney Domestic Lounge
• Sydney Beyond Lounge
• Wellington International Lounge (closed)

Access

Complimentary lounge entry is available to Velocity Frequent Flyer Gold and Platinum members flying with Virgin Australia or those traveling in Business Class.

Memberships can be obtained online via a Velocity account. As of July 2021, annual membership is priced at AUD399 without any joining fee. Options also include lifetime memberships and single-entry passes.

Velocity Frequent Flyer Program

Established in 2005, Virgin Australia's loyalty program, Velocity Rewards, initially collaborated with National Australia Bank to offer a joint credit card. By 2007, members could transfer points from selected Westpac, American Express, and Diners Club cards, with ANZ Visa cards added to the program in 2008. The membership base expanded to 4 million by 2014.

To appeal to business travelers, Velocity introduced tiered status levels—Red, Silver, and Gold—in late 2007. Points accumulation was originally tied to the price of flights rather than the distance traveled: Red members earned five points per dollar spent, Silver six points, and Gold seven. However, points for V Australia flights and most partner airlines have consistently been awarded based on distance flown.

Velocity pioneered the Australian frequent flyer market by offering "any seat, any time" reward availability, enabling members to redeem points for any available seat at current fare prices—a concept later adopted by Qantas in 2008.

In August 2011, the program was rebranded as "Velocity Frequent Flyer" and introduced a new Platinum status tier.

July 2013 marked the launch of the Global Wallet prepaid travel card—the first of its kind in Australia—allowing users to preload multiple currencies before travel and access funds globally through ATMs or Visa-accepting merchants. Supported currencies include AUD, CAD, EUR, GBP, HKD, JPY, NZD, SGD, THB, USD, and ZAR. Cardholders earn one Velocity point per dollar spent overseas and one point per two dollars spent within Australia.

In 2015, Velocity Frequent Flyer received the 'Program of the Year' award for the Middle East & Asia/Oceania region at the Freddie Awards.

Controversies

• In 2003, a man with partial quadriplegia was removed from a Virgin Blue flight after staff mistakenly believed he was intoxicated or posed a threat. He subsequently reached a settlement following legal action against the airline.
• Virgin Blue lost an age discrimination lawsuit in October 2005 concerning flight attendants. Eight former attendants over age 34—previously employed by the now-defunct Ansett Australia—were denied jobs and awarded compensation. The airline's appeal was unsuccessful and it was ordered to cover legal costs.
• In May 2006, Virgin Blue faced backlash over its policy requiring passengers unable to care for themselves during flights to be accompanied by carers. Following intervention by the Australian Human Rights and Equal Opportunity Commission, this rule was narrowed to apply only to passengers weighing over 130 kg. Despite this change, in October 2006 the chair of the ACT Disability Advisory Council was denied boarding on a Virgin Blue flight, generating further controversy.
• In January 2007 at Adelaide Airport, Virgin Blue staff requested a passenger remove a T-shirt featuring an image of George W. Bush with the phrase "World's Number One Terrorist," citing concerns over potential offense. The airline defended its decision.
• In January 2011, Virgin Blue was fined $110,000 for breaching anti-spam laws after complaints that customers found it difficult to unsubscribe from marketing emails. The Australian Communications and Media Authority mandated an independent audit of the airline’s email marketing practices.
• Virgin Australia's policy of not seating male passengers next to unaccompanied minors—intended to prevent abuse—was criticized as discriminatory. After public criticism in 2012, the company announced it would review this policy.
• In mid-2014, the Australian Competition & Consumer Commission initiated legal proceedings against Virgin Australia regarding drip pricing tactics.
• In 2020, Perth Airport detained Virgin Australia aircraft using heavy equipment due to outstanding debts accumulated during that year.
• In July 2025, unions representing flight and cabin crew escalated disputes at the Fair Work Commission concerning substandard layover hotel accommodations in Perth. Virgin responded that management selected the hotel because it was “clean, comfortable and appropriate.”