Qatar Airways is all set to buy a 25 percent stake in Australia's prominent airline Virgin Australia from US private equity firm Bain Capital, as the Gulf firm looks for access into Australian routes. 

The purchase of the minority stake will now need to be signed off by Australia's government, which denied Qatar Airways' requests last year to fly additional services into destinations like Sydney, Melbourne, Brisbane and Perth. 

"This partnership brings the missing piece to Virgin Australia's longer-term strategy," Virgin Australia CEO Jayne Hrdlicka said in the statement.

Deal Subject to Conditions

To matetrialize the deal, Australia's Foreign Investment Review Board must approve the stake sale. However, the treasurer holds the power after that to accept or reject the recommendation or impose conditions on the deal. 

"It wouldn't be appropriate for me to pre-empt that process or comment further. More broadly, we do want to see a strong, secure airline industry that delivers for consumers," said Australian Treasurer Jim Chalmers after the announcement of the deal. 

Competition to Qantas Airways

The deal with Qatar Airlines represents a significant investment that could help Virgin Australia prepare for an initial public offering. 

It could also help Virgin Australia to strengthen its position in the market where Qantas Airways is currently dominating. 

In the joint statement, Qatar Airways CEO Badr Mohammed Al Meer said that competition in the aviation sector is a good thing, as it will ultimately benefit the customers. 

Under the deal, Virgin Australia is planning to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha by the second half of next year. 

Earlier this month, Qatar Airways announced its partnership with the UEFA Champions League in a deal that runs until 2030. 

"We are thrilled to join forces with UEFA. As the Official Airline Partner of the UEFA Champions League, Qatar Airways is dedicated to transporting thousands of fans to this esteemed competition," said Al Meer at that time.