Qatar Airways will buy a 25% stake in Australia's No. 2 airline Virgin Australia from U.S. private equity firm Bain Capital, the companies said on Tuesday, as the Gulf carrier looks for access into Australian routes that the government denied last year.

Virgin Australia says deal would increase competition with Qantas but consumer watchdog will need to scrutinise it. Read more at straitstimes.com.

The news comes just over a year after Transport Minister Catherine King controversially blocked the expansion of Qatar flights into major Australian airports – a decision that Virgin, a codeshare partner of Qatar,