On 4 May 2011, parent company Virgin Blue announced the rebranding of all of its services (including V Australia and Pacific Blue Airlines) under the new brand Virgin Australia. On 7 December 2011 it ceased to operate under the V Australia name.

The name of Virgin Blue's international airline was decided in the same way that Virgin Blue's own name was found, with a public naming competition conducted in early June 2007.

On 25 June 2007, Virgin Blue released the 8 finalists of the naming competition. They were:

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) has 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.)

On 25 July 2007, Virgin Blue announced that V Australia would be the name of the new carrier, with the runner up of the competition, Didgeree Blue, to be the name of the airline's first plane.

In early 2006, Virgin Blue announced its intention to operate up to seven flights a week to the U.S. through either Los Angeles International Airport or San Francisco International Airport, 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 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. V Australia has since been allowed unlimited capacity between Australia and the U.S. by the Australian International Air Services Commission.

Since then, V Australia applied to the United States Department of Transportation to operate services to and from Sydney Airport to Los Angeles International Airport, San Francisco International Airport, Seattle-Tacoma International Airport, McCarran International Airport (Las Vegas), and John F. Kennedy International Airport (New York City). Permission from the United States Department of Transportation was given after the signing of the open skies agreement.

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