A major airline deal promising better value airfares into Europe and Asia won’t crash prices for passengers but will be difficult for regulators to turn away, an aviation expert says.

Qatar Airways has proposed purchasing one-quarter of Virgin Australia, allowing the local carrier to launch flights within a year from most Australian capitals into the Middle Eastern hub of Doha.

The Qatar-staffed, Virgin-run flights will link into the Gulf carrier’s global network.

It comes about a year after Qatar’s attempt to land more often in Australia was rejected by the federal government, following lobbying from Qantas.

A former head of Australia’s International Air Services Commission, overseeing airlines’ route rights, said he did not envisage Qatar and Virgin facing regulatory impediments this time around.

The deal, announced on Tuesday, would likely balance the competitive tension between Virgin and Qantas, whose extensive alliance with Emirates allows the Gulf carrier to use Australian air rights for destinations such as Italy, Ian Douglas said.

Heavily discounted fares would remain the domain of Chinese airlines but Australians would likely get more bang for their buck from having two premium global carriers boosting local brands’ ticket offerings and loyalty bonuses.

Foreign investment concerns were also moot given overseas firms already held 97.5 per cent of Virgin.

“It would be very hard for the government to say no,” Dr Douglas told AAP.

“The substantial market to Europe … has really become the preserve of carriers based from Singapore to Istanbul. European airlines have pulled out.”

Qatar’s proposal involves loaning aircraft and crew to Virgin as well as expanded codesharing and more crossover between loyalty schemes.

“It clearly demonstrates the very significant effort and resources it takes to become a real competitor against the dominant industry provider, Qantas,” Swinburne law and corporate governance specialist Helen Bird said.

“Qantas has a stranglehold over both the domestic and international aviation markets in Australia.”

Virgin Australia chief executive Jayne Hrdlicka said the deal would make the local airline more competitive, inevitably translate into more choice and better value airfares and potentially lead to a re-float on the stock market.

“This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation,” she said.

The Transport Workers Union demanded any float be accompanied by a share scheme for employees, who helped rebuild Virgin after the COVID-19 pandemic.

It also wanted workers’ reservations about Qatar Airways’ influence over their jobs and working conditions addressed.

“There are understandable doubts about this deal, particularly for cabin crew,” the union’s national secretary Michael Kaine said.

“A commitment to respect is expected and necessary given Qatar Airways’ track record.”

Competition in Australia’s aviation sector has been in the spotlight since the collapse of Rex Airlines, which failed to disrupt the duopoly on east coast capital city routes.

The proposed Qatar share deal would need approval from the Foreign Investment Review Board and other regulators.

Treasurer Jim Chalmers said he did not want to pre-empt those decisions but emphasised the government’s desire for a strong, competitive airline industry that delivered for consumers.

“We expect components of the deal related to international flights will also be subject to ACCC merger authorisation consideration,” he said.