On 17 November 2007 a Boeing 737-700 being operated by Virgin Blue on a scheduled passenger service from Coolangatta to Melbourne at night experienced a right hand engine bleed trip off during the take off, which was continued. A subsequent attempt at reset was not successful and once above FL170, above which APU air use was not permitted, only the left engine bleed air would be available for air conditioning and cabin pressurisation. The flight crew initially decided to cruise at a lower level than planned, FL250, but once there, icing conditions were encountered and the crew decided to continue the climb to FL350 to cruise clear of cloud.