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 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.

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.

Australians will benefit from stronger competition in the aviation sector, the Treasurer has said, as he approved Qatar Airways acquiring a 25 per cent stake in Virgin Australia. The approval will mean 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.

(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.