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Singapore can replace Qantas
Passengers at Singapore's Changi airport.

The Singaporean Government has admitted that the island state will be impacted by Qantas's decision to move its regional hub to Dubai but says it can replace the lost airline and passenger flows.

Singapore's Minister for Trade and Industry Lim Hng Kiang said today that Qantas's change of direction was a commercial decision.

"Of course (it) will have some impact on us," Mr Lim told reporters in Canberra.

"But at the same time, there are air slots that Qantas can use and the air traffic in Asia and South-East Asia is growing.

"So what we may lose in terms of the European flow, we hope to rebuild again."

The minister is in Australia for the 7th Singapore-Australia Joint Ministerial Committee meeting.

Last week, Qantas announced its flights to Europe would now stop over in Dubai, under a 10-year partnership signed between the carrier and Middle East airline Emirates.