Treasurer Jim Chalmers has given the green light for Qatar Airways to buy a 25% stake in Virgin Australia, as part of a strategic alliance. The deal will shake up the Australian aviation market. The announcement follows

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 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.

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

Qatar Airways’ investment will provide VA with access to the expertise and scale of a global airline, enhancing its ability to compete in domestic and international markets. Existing shareholders—Bain Capital, Virgin Group, and Queensland Investment Corporation—will retain their stakes in the airline.

The Australian government has approved Qatar Airways’ investment in Virgin Australia, which is an important part of the multifaceted partnership proposed by the two carriers. Australian Treasurer Jim Chalmers ruled that Qatar Airways can proceed with its plan to purchase a 25% minority stake in Virgin Australia.

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.

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