Deal struck in Virgin Australia bidding war

A REVAMPED Virgin Australia and hundreds of jobs are set to remain in Queensland after the Queensland Investment Corporation struck a deal with the two bidders battling for ownership of the airline.

Cyrus Capital and Bain Capital have today lodged their final bids for the embattled airline, which collapsed into voluntary administration in April.

Administrator Vaughan Strawbridge of Deloitte will consider the bids before announcing a winner before the month's end.

It is understood Cyrus and Bain have reached an agreement with the Queensland Investment Corporation, doing its bidding on behalf of the State Government, to keep Virgin's headquarters in Brisbane.

Treasurer Cameron Dick announced earlier this year the state would put up $200 million to the bidder who was prepared to retain the headquarters in Queensland.

A spokesman for QIC confirmed it had "fruitful discussions" with Cyrus and Bain.

"We've been talking with all bidders and we've been very actively pursuing the interest of the state," he said.

Earlier this month Bain Capital revealed to The Courier-Mail it would take a significant offer from New South Wales or Victoria to lure Virgin away from Queensland.

About 1300 of the airline's corporate and highly-skilled staff are based here.