(Reuters) -Qantas Airways is not opposed to Qatar Airways' proposal to take a 25% stake in Australia's No. 2 carrier Virgin Australia, Qantas' chair and CEO said on Friday, adding its investment plan meant it was well-placed to compete.

Qantas had previously lobbied the federal government, which still needs to sign off the Qatari investment, against the Gulf carrier's ultimately unsuccessful bid to offer more flights to Australia.

"Qantas is not opposed to foreign airlines owning stakes in Australian airlines," Chair John Mullen said at its annual meeting.

"As part of the regulatory examination of the proposed transaction, we would anticipate that the proposed deal will be assessed in the context of Australian jobs and employment, the effectiveness of Australia's air services framework and the appropriateness of wet leasing arrangements," he added.

Virgin Australia has asked the government to allow it to start operating flights from Australia to Doha by June next year using Qatar Airways aircraft and crew in an arrangement known as "wet leasing".

A union representing Qantas pilots has criticised this proposal for not creating jobs within Australia.

Qantas CEO Vanessa Hudson said her airline welcomed competition and it did not have a specific figure on how the proposed Qatar deal would impact the company.

Many Qatar Airways passengers fly between Australia and Europe including a stop in its Doha hub. Qantas is increasingly offering ultra-long non-stop routes such as Perth-London and Perth-Paris and has plans for Sydney-London flights to gain an edge over one-stop rivals as it invests in new aircraft.

Hudson also said Qantas will incorporate a number of aircraft it wet leased from European carrier Finnair into the Qantas main fleet under a "dry lease" contract by the end of next year, meaning they would be flown with Qantas crew.

(Reporting by Lisa Barrington in Seoul; Editing by Muralikumar Anantharaman and Jamie Freed)