Australia Blue and Virgin Pacific were early favourites to win the competition, despite a problem with the latter, as Singapore Airlines (through its stake in Virgin Atlantic) had control over the use of the 'Virgin' name on International air routes, and had not, in the past, allowed its use (see Pacific Blue Airlines).

[6][7] In early 2006, Virgin Blue announced its intention to operate up to seven flights a week to the United States through either Los Angeles or San Francisco, saying that the route was needed to make the airline as profitable as possible.

The airline was given permission for ten flights a week to the United States by Australian regulators on 24 July 2007.

[7] 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.

[9] V Australia later applied to the United States Department of Transportation to operate services to and from Sydney to Los Angeles, San Francisco, Seattle, Las Vegas, and New York.

On 9 February Didgeree Blue touched down at Sydney Airport after flying from Seattle via Los Angeles where it was launched to the US press by Sir Richard Branson and Australian celebrities Julian McMahon and Holly Valance.

[15] In August 2010 it was announced that due to the unprofitability of some routes, V Australia would cease its 777-300ER services to Johannesburg and Phuket.

[16] On 24 February 2011, the aircraft were redeployed on services between Sydney and Abu Dhabi to coincide with the partnership between V Australia and Etihad Airways.

V Australia also had an interline agreement with Virgin America to Boston, Las Vegas, San Francisco, New York City, Seattle and Washington DC.

All three classes featured ambient Mood Lighting relative to the time of day or night, similar to that of sister airline Virgin America.

Lounge access was available when flying V Australia for International Business Class passengers and Velocity Gold members only.