The history of Virgin Australia began in 2000 when the company was founded by British entrepreneur Sir Richard Branson. Branson had long been a believer in the potential of the Australian aviation market and believed that a new low-cost carrier could revolutionize domestic travel in the country. The airline was originally named Virgin Blue, but the name was changed to Virgin Australia in 2011 to better reflect its global reach.

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The Virgin Australia fleet began with just four Boeing 737-800 aircraft and has grown to include more than 120 aircraft across its mainline and regional fleets. The mainline fleet consists of Airbus A330-200, Airbus A320neo, Boeing 737-700 and Boeing 737-800 aircraft. The regional fleet consists of Bombardier Dash 8 Q400 and Fokker F100 aircraft.

The first major milestone for Virgin Australia was the launch of its first international route from Brisbane to Los Angeles in June 2009. This marked the first time an Australian low-cost carrier had been able to operate an international route. This was followed by the launch of additional international routes to Fiji, New Zealand, Hawaii and the United Kingdom.

In 2011, the airline rebranded itself to become the Virgin Australia Group. The group now consists of Virgin Australia, Virgin Australia Regional Airlines, Tigerair Australia and its frequent flyer program, Velocity Frequent Flyer. This enabled the airline to offer a more comprehensive range of services and to better compete with other domestic and international airlines in the market.

In 2013, Virgin Australia launched its premium service, Business Class, on its domestic and international routes. This provided passengers with access to a wide range of amenities such as priority check-in, priority boarding, premium meals and beverages, and enhanced in-flight entertainment. In 2014, the airline also began offering Economy X seats on its domestic network. These seats offer more legroom, priority boarding, and other amenities for a small fee.

In 2017, the airline launched its first international long-haul route from Melbourne to Hong Kong. This route was followed by the launch of international services to the United States, India, and London.

Virgin Australia has not been without its share of incidents. In 2011, a Virgin Blue aircraft was involved in a mid-air collision with a light aircraft over Victoria, Australia. The incident resulted in the death of all four people on board the light aircraft. In 2013, the airline was the subject of an investigation by the Australian Federal Police over alleged cartel conduct. The investigation was later dropped and no charges were laid.

Today, Virgin Australia is one of the major airlines in Australia and the South Pacific. The airline has grown from its humble beginnings as a low-cost carrier to a major player in the international aviation market. It has achieved this through a combination of innovation and customer service, and has become a major competitor in the domestic and international aviation markets.