I can't see it happening. Politically they wouldn't let it happen.
However it does get Allan Joyce and Co off the hook. They can destroy the business they are supposed to be managing then let EK take over and they get out with reputation and money intact. The owners I imagine would get their money back and collect probably some of the billions in cash lying around and the left over QF super fund.
I imagine the strategy would be to shut down international, use the domestic feed and sell off Jetstar probably with some propping up in one way or another. EK would ramp up flights to all Australian cities and would also collect free access to the Pacific, which would impress the Americans no end.