Qatar Airways will buy a 25 per cent stake in Virgin Australia after an agreement was reached between the Australian airline's owner, Bain Capital, and the Gulf carrier.

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.

Allowing an international state-owned carrier buy a stake in Australia’s second-biggest airline will go a long way to creating a better competitive balance in the domestic aviation market.

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

Qatar Airways has announced plans to buy a 25% minority stake in Virgin Australia from its owner, US private equity firm Bain Capital.

Virgin Australia says deal would increase competition with Qantas but consumer watchdog will need to scrutinise it. Read more at straitstimes.com.

The Australian's Associate Editor Eric Johnston says Qantas faces a “competitive threat” following Qatar’s plans to buy a 25 per cent stake in Virgin Australia.

Qatar Airways is investing in Virgin Australia ahead of the latter's potential return to the ASX boards. The post Qantas share price sinks 5% on huge Qatar Airways-Virgin Australia deal appeared first on The Motley Fool Australia.

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. That could significantly shake up Australia's air travel market which is currently dominated by Qantas,