Qatar Airways is reportedly in negotiations to acquire a substantial stake in Virgin Australia, which is currently owned by Bain Capital, as reported by the Australian Financial Review (AFR) on Wednesday.

This move comes amid intensifying competition within the Australian aviation sector, where Qantas remains the dominant player. According to the Australian Financial Review (AFR) report, discussions are underway for Qatar Airways to acquire up to 20% of Virgin Australia.

This potential deal follows Bain Capital’s delayed plans for a public listing of Virgin on the Australian Securities Exchange, as reported by Reuters last year. The listing, which aimed for a valuation of $665.5 million, was reportedly put on hold.

According to the report, Qatar Airways could announce its stake purchase as early as next week. While Bain Capital and Qatar Airways have declined to comment, the news adds another layer to the complex relationship between the Gulf carrier and Australia.

Notably, Qatar Airways’ previous attempts to expand its presence in the Australian market were met with resistance from the country’s Labor government. The airline has criticized this decision as unfair, highlighting its efforts to repatriate Australian citizens during the pandemic.

Earlier this year, regional rivals Turkish Airlines and Emirates increased their operations in Australia, highlighting the rising demand for long-haul services from the Middle East.