Virgin Australia will resume long-haul international flights using Qatar Airways planes and crew after selling a major stake to the Gulf airline in a deal that could circumvent previous government resistance and poses a direct challenge to the dominance of national carrier Qantas.

In the most significant shake-up to the country’s travel and tourism sector since the pandemic, Qatar will buy 25 per cent of Virgin from its private equity owner Bain Capital and use the airline to expand its services in Australia where it has been stymied by government restrictions.