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.”