I'm puzzled by this discussion.

In Europe we understand to be a low cost airline to be one which has low costs. That would mean:

- staffing rate less than 40 per cent of 'traditional' carrier
- staff on new contracts and productivity pay
- no FFP
- no interlining
- only point to point segments allowed
- no cancellation or delay liability
- common fleet type
- online sales and e-ticketing only
- avoidance of high-tariff or congested airports
- limited paid-for catering

Points and miles just aren't in the picture IMHO.