Qatar Airways will buy a 25% stake in Virgin Australia from U.S. private equity firm Bain Capital, posing a tougher contest for Qantas Airways that has dominated Australian routes and pushed back against giving access to the Middle Eastern carrier.

Qatar Airways plans to acquire 25% of Virgin Australia, potentially to reshape the Qantas-dominated Australian aviation market.

Australia’s second-largest airline, Virgin Australia, said Middle Eastern carrier Qatar Airways plans to acquire a 25% stake, a key investment as the Bain Capital-owned carrier eyes an IPO.

Qatar Airways will buy a 25% stake in Australia's No. 2 airline Virgin Australia from U.S. private equity firm Bain Capital, the companies said on Tuesday, as the Gulf carrier looks for access into Australian routes that the government denied last year.

The deal will see Qatar Airways buy a 25 per cent equity stake in Virgin Australia from private equity group Bain Capital, which bought the carrier originally set up by Sir Richard Branson out of administration during the pandemic.

Qatar Airways unveiled a bid to take a 25 percent stake in troubled airline Virgin Australia on Tuesday, a deal that could shake up Australia's Qantas-dominated market.

He loves to work with and for airlines, including Qantas and Virgin Australia. Qatar Airways has announced plans to buy a 25% minority stake in Virgin Australia from its owner, US private equity firm Bain Capital.

Nationals Leader David Littleproud says Qatar Airways seeking to buy a stake in Virgin Australia is a “good thing” for competition.