The Australian government on Thursday approved Qatar Airways' move to buy a 25% stake in Virgin Australia from U.S. private equity firm Bain Capital saying the deal would deliver more international flights and support jobs.

Qatar Airways Ltd.’s acquisition of a 25% stake in Virgin Australia can proceed subject to enforceable conditions, Australian Treasurer Jim Chalmers said, adding the deal would improve competition in the country’s highly-concentrated aviation sector.

Australian travellers are set to benefit after a deeper strategic partnership between Virgin Australia and Qatar Airways Group

Australia on Thursday approved Qatar Airways buying a 25% stake in Virgin Australia from U.S. private equity firm Bain Capital, posing a challenge for national flag carrier Qantas that has long dominated Australian air routes.

Qatar Airways has finally received regulatory approval to take a 25% minority stake in Virgin Australia paving the way for international collaboration.

The deal will open new routes for travellers and is expected to provide a long-term pathway for Virgin Australia to operate its own long-haul flights.

Under the newly approved deal, the gulf state carrier will get its hands on a 25 percent stake from American investment giant Bain Capital. Australian Treasurer Jim Chalmer and

Qatar's minority 25 per cent stake in Virgin Australia has been approved by the Federal Government with VA long-haul flights to Doha starting on 1 June.

Will a price war emerge as Qatar takes a 25% stake in Virgin Australia boosting services between Australia and Doha? Alxandra Jones speaks with Aviation Expert Ellis Taylor from Cirium, plus SBS Finance Editor Ricardo Gonçalves takes a look at the day's market action with Henry Jennings from

Virgin Australia has the go-ahead from the government for its sale of a 25 per cent stake to Qatar Airways. Now all the company needs is to appoint a permanent CEO following a search through executive firm Korn Ferry.

(Reuters) - Australia's Treasurer Jim Chalmers approved Qatar Airways' proposal to buy a 25% stake in Virgin Australia, the Australian Financial Review reported early on Thursday.