Qantas sees tie-up benefits

Qantas Airways, Australia's largest carrier, says it is managing to fill a surge in capacity to Singapore from its tie-up with Emirates as economic growth encourages travel demand in Asia.

The airline, which increased seats to Singapore by 40 per cent from the alliance, is seeing forward bookings over the next few months "growing into that capacity quite quickly", according to Simon Hickey, the chief executive of the carrier's international unit.

"We're quite confident about our position in Singapore," Hickey said. "It's a key gateway for Asia where we see a lot of Australian traffic coming to Singapore and then going across Asia."

Qantas' alliance with Emirates, which started on March 31, gives travellers between Australia and Europe the option of flying through Dubai instead of Singapore, the traditional gateway for the so-called "kangaroo route".

The carrier has rescheduled Asian flights to appeal to business class travellers as the Emirates tie-in allows it to reduce unprofitable routes to Europe.

"It's a focus on the Asian side," said K. Ajith, an analyst at UOB Kay Hian in Singapore. "There are a lot of millionaires in this region and travel demand is growing faster than anywhere else, so it makes sense to have a commitment in an Asian hub."

Qantas opened a "multimillion-dollar" lounge in Terminal 1 of Singapore's Changi Airport this week. It can seat 460 travellers and has 20 shower stalls.