Qatar Airways is investing in Virgin Australia ahead of the latter's potential return to the ASX boards. The post Qantas share price sinks 5% on huge Qatar Airways-Virgin Australia deal appeared first on The Motley Fool Australia.

Qatar Airways has announced plans to buy a 25% minority stake in Virgin Australia from its owner, US private equity firm Bain Capital.

Qatar Airways is set to acquire a 25% stake in Virgin Australia from US private equity firm Bain Capital, marking a significant move in the Australian aviation market. The deal, for an undisclosed amount,

Virgin announced on Oct. 1 that Qatar aims to acquire a 25% stake in the Australian airline from owner Bain Capital. The pair are already strategic partners, and the stake would lead them to strengthen their relationship, the carriers said. The Qatar Airways interest has been previously reported.

Qatar Airways is looking to acquire a 25% stake of Virgin Australia in a move that could deliver new benefits and flights.

Qatar Airways unveiled a bid to take a 25 percent stake in troubled airline Virgin Australia on Tuesday, a deal that could shake up Australia's Qantas-dominated market.

Qatar Airways will buy a 25% stake in Virgin Australia from U.S. private equity firm Bain Capital, posing a tougher contest for Qantas Airways that has dominated Australian routes and pushed back against giving access to the Middle Eastern carrier.

The Australian's Associate Editor Eric Johnston says Qantas faces a “competitive threat” following Qatar’s plans to buy a 25 per cent stake in Virgin Australia.