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.

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.

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.

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

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

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.

(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.

Qatar Airways will take a 25% stake in Virgin Australia, following approval of the investment by Australia's Department of the Treasury. The investment sets the stage for Virgin Australia to resume long-haul flying this summer for the first time since reorganizing during the pandemic.

Passengers and the aviation industry are expected to benefit from improved competition after a deal between Qatar Airways and Virgin Australia was approved.