HOME-GROWN airlines have seen their share of international travel to and from Australia slashed by a quarter in the past decade under the onslaught of mid-point carriers such as Singapore Airlines and Dubai-based Emirates.

A new Bureau of Transport and Regional Economics analysis of the 57 international scheduled airlines flying to and from Australia in 2005 shows local airlines' share of international passenger traffic fell from 42.6 per cent in 1995 to 31.7 per cent last year.

The fall came as overall international scheduled passenger traffic rose 7.8 per cent to 20.876 million in 2005, the highest level recorded in a calendar year.

It was mainly driven by an 11 percentage point fall in market share held by Qantas Airways to 28 per cent.

The share held by the Qantas Group, which included Jetstar and Australian Airlines, was down 8.9 percentage points.

Qantas has since announced it will drop the Australian Airlines brand and launch Jetstar International in an attempt to reverse the downward trend.

Air NZ's share of the Australian market fell 2.5 percentage points over the decade to 8.7 per cent last year. The Kiwi carrier's group figures were constant when low-cost subsidiary Freedom Air was included but it conceded its spot as the second biggest international carrier servicing Australia to Singapore Airlines.

Singapore boosted its market share to Australia by 3.9 percentage points to 10.6 per cent and Malaysia Airlines' share increased 1.9 points to 5.5 per cent.

Emirates, which was not operating to Australia in 1995, grabbed 6 per cent of the market last year.

The Singaporeans also accounted for the biggest percentage - more than a fifth - of passengers carried non-stop between Australia and international cities and more than half of the 1.977 million transit movements by passenger using services with the same flight number.

The report comes as Emirates is seeking additional capacity into Australia. Another Middle Eastern carrier, Qatar Airways, is also seeking to boost its presence.

Qatar is allowed three flights a week between Dohar and Melbourne but wants to fly daily.

A spokeswoman for Transport Minister Warren Truss said the Government had told the airline that any increase in access would have to be balanced by more rights for Australian carriers to operate to countries beyond the Middle Eastern hub.