Australia's competition watchdog last week backed a planned alliance between Virgin Australia and Qatar Airways, which could result in 28 new weekly return services between Doha and Australia's major cities.

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.

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.

Australian travellers could face cheaper airfares after Qatar Airways' 25 per cent stake in Virgin Australia was approved federal government.

The treasurer said his decision was in line with the advice of the Foreign Investment Review Board, and that the approval is subject to legally enforceable conditions including Australian representation on Virgin’s board, long-haul flight training of Australian pilots and cabin crews in Doha, and protection of its customer data.

Qatar Airways has clinched regulatory approval for a 25% investment in Virgin Australia, paving the way for the Australian carrier to eventually restart long-haul operations.

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

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.

Move will inject foreign competition into Australia's Qantas-dominated aviation sector. Read more at straitstimes.com.