I just checked their website and this looks to be the case.
When I spoke to Aden a few weeks back he did mention that they were getting some trouble from 'Jetblue', an American airline, who said that the names were too similar. Perhaps this is the reason for the change. Seems Jetblue were being a bit vindictive to me as they don't even fly the same routes as Flyblu - sorry Bluarrow!
I've wondered about that before. We've also got an airline called Flybe, so if the name has changed to BluArrow, it is definitely less easily confused with these two.