I believe that AO "failed" not so much because of poor loads but rather a cost base that was deemed to be too high. AIPA ensured that pilot pay was not cut below mainline levels while cabin crew weren't all that far behind their mainline brethren. Overlay these facts with some of the woes of the time (SARS, Bali bombings) combined with a generally poor management, you end up with a pretty good recipe for an enterprise not to succeed as well as it should.