"This will ensure Australian consumers have access to even better value airfares and greater choice," the companies said in a joint statement. The deal could also pave the way for Virgin to relist on the stock market. However, it will be subject to regulatory approval and fierce political debate. Virgin Australia started bankruptcy proceedings at its financial nadir in 2020, laying off hundreds of staff as the Covid-19 outbreak wrought havoc on international travel. US private equity giant Bain Capital came to the airline's rescue later that year after the Australian government refused to bail out the majority foreign-owned company. Qantas would have assumed a virtual monopoly over many Australian routes if its competitor went under. Qatar Airways has been looking for ways to increase its foothold in the Australian market. Rival Qantas -- along with its low-cost brand Jetstar -- has a more than 61 percent share of the domestic air market and strong political clout.