SYDNEY, Oct 1 (Bernama-dpa) -- Qatar Airways intends to acquire a 25 per cent equity stake in Virgin Australia from Bain Capital, the airlines announced on Tuesday.
The move will drive increased competition in Australia, the companies said in a joint statement, reported German news agency dpa.
Subject to regulatory approvals, the deal would see Virgin launch flights from Brisbane, Melbourne, Perth, and Sydney to Doha, and connect to Qatar Airways' global network.
"These extra flights will open up more than 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travellers," the airlines said.
Virgin Australia Group chief executive Jayne Hrdlicka said the deal would mean more choice and better value for Australians.
"This partnership brings the missing piece to Virgin Australia's longer-term strategy and is a huge vote of confidence in Australian aviation."
The proposed long-haul services between Australia and Doha would bring an estimated A$3 billion (US$2.08 billion) to the country, Hrdlicka said.
"Both airlines are thrilled by the opportunity to work together more closely, which will bring significant benefits to Australian travellers and the economy."
Qatar Airways Group chief executive Badr Mohammed Al-Meer said the airlines were committed to delivering the best possible service and value to Australian passengers.
"Not only that, we believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers. This agreement will also help support Australian jobs, businesses and the wider economy."
--BERNAMA-dpa
