Per the Sidney Morning Herald:

Qantas is on the verge of signing an alliance deal with Middle Eastern airline Emirates as early as next week, in an effort to stem large losses on the kangaroo route to Europe.

The code-share agreement is believed to include route swaps whereby Emirates would operate the majority of flights on some routes such as those out of Perth to Europe. Qantas has been flying from Perth to Europe via Singapore.

However, the deal will raise serious questions about the future of Qantas’s longstanding revenue-sharing agreement with British Airways on the kangaroo route between Australia and the UK.