You're on transmit, not receive. I'm not talking in circles - the point is that Norwegian's business model is essentially no different, its only advantage is lower labour costs through underhanded measures. I've consistently made that point, there's no contradiction. However, because that's their only advantage they're unable to make those lower fares that stimulate the market, as you say, achieve a positive bottom line.
Anyone can make money charging $10 for a $20 bill. Your business just won't last long. That's not (unsustainable businesses that is) in the interests of staff, passengers or investors. Let me know when Norwegian starts making a sustainable profit on those lower fares.
I guess since it's clear you don't understand the difference in economics between hub (typical legacy) and a local pricing (typical LCC) strategy I'm going to have to explain it.
City A has average fares of $1000 RT to City B, C, D, E, F, G.
City A to City B has demand of 150 passengers per day, C, D, E, F, and G have demand of 50 each.
This is an overly simplified example.
Hub Strategy Flight from City A to City B
150 passengers at $1000 to City A
50 passengers at $500 City C, $1000 prorated over Flight 1 and Flight 2
50 passengers at $500 City D, $1000 prorated over Flight 1 and Flight 2
50 passengers at $500 City E, $1000 prorated over Flight 1 and Flight 2
50 passengers at $500 City F, $1000 prorated over Flight 1 and Flight 2
50 passengers at $500 City G, $1000 prorated over Flight 1 and Flight 2
400 passengers; 40% local traffic; average prorate fare is $687.50; large aircraft
Local Strategy Flight from City A to City B
225 passengers at $666 to City A
By cutting the price by 34% in a market with 1:1 revenue stimulation, the marketsize jumps 50%.
225 passengers; 100% local; average fare is $666; smaller aircraft
You can cut the fare by 34% in this example and get almost identical yield in each strategy. Potentially the RASM is also the same if the aircraft size is reduced in scenario 2. Plus the costs of operating a hub are MUCH higher than a local operation even on a per passenger basis, and I did not even consider the denser seating configuration an LCC typically operates.