Qatar Airways plans to acquire a 25 per cent stake in Virgin Australia, while the existing codeshare agreement between the two carriers is also expected to expand.

The Doha-based?carrier intends to acquire the minority stake from US private equity group Bain Capital, which helped to relaunch the Australian carrier after it entered voluntary administration in 2020 as a result of the coronavirus pandemic.

Subject to approval by the Australian Competition and Consumer Commission, the deal will also enable Virgin Australia launch long-haul international flights.

This includes plans to commence flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting to Qatar Airways¡¯ global network via an expanded codeshare deal that promises access to ¡°better value¡± fare options for both corporate and leisure travellers as well as access to more international destinations with improved schedules and frequencies, according to the carriers.

The proposed sale will also ¡°unlock new areas of cooperation¡± between the two carriers and increase domestic competition in Australia, where aviation is largely dominated by national carrier Qantas. This includes ¡°increased opportunities¡± to earn and redeem loyalty points for members of the airlines¡¯ respective loyalty programmes Virgin Velocity and Qatar Airways¡¯ Privilege Club, the carriers said.

Virgin Australia chief executive, Jayne Hrdlicka, said the deal brings the ¡°missing piece¡± in the airline¡¯s longer-term strategy.

¡°I am delighted that our closer relationship allows us to put our ¡®toe in the water¡¯ regarding long-haul international, as well as the ability to deepen other areas of existing cooperation, including between our respective loyalty programmes and code sharing arrangements,¡± she added.?

Qatar Airways Group CEO, Badr Mohammed Al-Meer, said: ¡°The alignment of our two airlines is significant, the relationships are deep, and we could not be more proud to bring even more great value and choice to all Australians.¡±