Qatar Airways will buy a 25% stake in Virgin Australia from U.S. private equity firm Bain Capital, posing a tougher contest for Qantas Airways that has dominated Australian routes and pushed back against giving access to the Middle Eastern carrier.

Qatar Airways plans to take a 25% stake in Australia’s Virgin Australia Airlines Pty, expanding the Gulf carrier’s global network of equity holdings.

Allowing an international state-owned carrier buy a stake in Australia’s second-biggest airline will go a long way to creating a better competitive balance in the domestic aviation market.