here's my two cents worth! The main factors of the 11million loss was firstly fuel (AO just started charging Japan pax a fuel levy) japan market is more than 60% for AO. Segmentation costs, and the things that QF Skywalker has mentioned.
I'm very certain that all will be revealed on December 7th. I believe AO will co exsist with an international version of JQ. Remember JQ will be no frills. They will do Bali, but not from Sydney. I dont think an A320 would make the distance. They will most probably expand through-out the pacific as well. Point to point services.
There will be an a/c order very soon, to replace 767-300 fleet. AO will be part of that order. Once the a/c arrive from 2010 they will no doubt open new markets and new destinations.
Look out for announcements on changes to AO business model in the next month.