Virgin is flying high under a new banner.

After changing its name to Virgin Australia, the carrier has announced it has acquired new planes with new interior designs that promise a complete new "magical" experience.

The airline's CEO Richard Branson is confident that the new leather seats installed in its new planes, as well as the fresh food menu, including the catch-all "Virgin Australia" brand will encourage domestic and international flyers to patronise his company.

He added that the changes are also intended to post sufficient challenge to Qanta's airline, the nation's largest carrier.

Branson claims the overhaul will benefit travellers and shake up the industry.

Virgin Managing Director Jon Borghetti disclosed that the company has acquired two new planes, comprised of a Boeing 737-800 and an Airbus A330-200 to beef up the carrier's fleet.

Borghetti said, "We will give Australia an airline to be proud of."

The refurbished plans are designed to provide "unprecedented comfort and services for passenger and give major competitors a run for their money," Borghetti added.

More importantly, the additional comfort will not entail additional expenses for the passengers.

"We have listened to what today's traveller wants from an airline and we are incorporating that into every feature and every part of our service, while maintaining competitive pricing. We will do this by bringing the magic back to flying - providing a seamless experience, with excellent service that can be tailored to the individual," Borghetti said.