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.

After Qantas successfully lobbied against extra Qatar Airways flights, the Middle Eastern airline has exacted revenge on the Flying Kangaroo with a deal that will increase competition and possibly result in cheaper fares.

Qatar Airways plans to take a 25% stake in Australia’s Virgin Australia Airlines Pty, expanding the Gulf carrier’s global network of equity holdings.

(Reuters) -Qatar Airways plans to buy a 25% stake in Australia's No. 2 airline Virgin Australia from U.S. private equity firm Bain Capital, the companies said in a joint statement on Tuesday. The purchase of the minority stake for an undisclosed amount will serve as a cornerstone investment ahead of an anticipated return of Virgin Australia into public ownership,

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.

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 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.

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.