Qatar Airways seeking 25% stake in Virgin Australia [Video]

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.

The airlines, along with Virgin owner Bain Capital, announced details of the proposed agreement, which had long been rumoured, before markets opened in Sydney.

Under the plan, Qatar would take a minority stake in Virgin for an undisclosed sum.

The firms said it would spell more direct flights from Brisbane, Melbourne, Perth, and Sydney to Doha, which would better link Australia with Europe and elsewhere.

That could significantly shake up Australia’s air travel market which is currently dominated by Qantas, a pseudo-flag carrier beset by allegations of price gouging and deliberate overbooking.

“This will ensure Australian consumers have access to even better value airfares and greater choice” the companies said in a joint statement.

The deal could also pave the way for Virgin …