The Australian government on Thursday approved Qatar Airways' move to buy a 25% stake in Virgin Australia from U.S. private equity firm Bain Capital saying the deal would deliver more international flights and support jobs.

Qatar Airways Ltd.’s acquisition of a 25% stake in Virgin Australia can proceed subject to enforceable conditions, Australian Treasurer Jim Chalmers said, adding the deal would improve competition in the country’s highly-concentrated aviation sector.

The deal will open new routes for travellers and is expected to provide a long-term pathway for Virgin Australia to operate its own long-haul flights.

Australian travellers will enjoy more choice in long-haul flights under the deal, the federal government says.

The Aussie share market is likely to open lower after a broad sell-off on Wall Street. Treasurer Jim Chalmers approves Qatar's takeover of Virgin with strict conditions. Follow the day's events and insights from our business reporters on the ABC News live markets blog.

Qatar's minority 25 per cent stake in Virgin Australia has been approved by the Federal Government with VA long-haul flights to Doha starting on 1 June.

The eleventh hour approval is a huge relief to the airlines and Virgin’s owner Bain, who needed the federal government’s blessing before an election is called.

Australia's competition watchdog on Tuesday backed a planned alliance between Virgin Australia and Qatar Airways, saying it would provide air travellers with improved services and products.

(Reuters) - Australia's Treasurer Jim Chalmers approved Qatar Airways' proposal to buy a 25% stake in Virgin Australia, the Australian Financial Review reported early on Thursday.

Qatar Airways has been given the green light to buy a 25 per cent stake in Virgin Australia. Treasurer Jim Chalmers has signed off on the acquisition which will see the Middle Eastern carrier operate more flights between Australia and Doha.