Qatar Airways wins approval for stake in Virgin Australia

SYDNEY: Canberra will let Qatar Airways buy a 25 percent stake in troubled airline Virgin Australia, a senior government minister said Thursday, injecting foreign competition into the nation’s Qantas-dominated aviation sector.

Qatar will pay an undisclosed sum to acquire a minority stake in Virgin Australia after the deal was blessed by Australia’s competition watchdog.

“It is expected to strengthen competition in the aviation sector,” Treasurer Jim Chalmers said in a statement.

The airlines, along with Virgin owner Bain Capital, announced the long-rumoured proposal in October last year.

They pledged to run more direct flights from Australia to Doha, stoking competition on expensive long-haul routes long dominated by Qantas.

Qantas — along with its low-cost brand Jetstar — has a more than 61 percent share of the Australian market and boasts strong political clout.

Virgin Australia started bankruptcy proceedings in 2020, laying off hundreds of staff as the Covid-19 outbreak grounded international flights.