Onyx, it is impossible to offer "REAL loco prices" with that kind of operation. As it is, LoCos such as Ryanair already depend on subsidies of dubious legality to make even a seasonal service to many a "Troubled airport XXX" pay its way.
Some elements of the LoCo model could be adopted to keep costs under control, but if Joe Public doesn't pay realistic (i.e. high) fares, then airport XXX will remain as troubled as ever. The challenge for airlines and airports is to provide the kind of service for which Joe Public enthusiastically wants to pay a realistic fare.