A large part of the situation has to do with the after-effects of deregulation. It is no coincidence that Legacy carriers like United and Delta looked at their options when they entered Chapter 11 and decided that the way out of their quagmire was to focus on international routes. Simply put, there is too much competition to make money domestically. Who is responsible for this? The LCCs? If I can fly to Vegas from the Denver area on Southwest or Allegiant for 60 bucks each way, am I likely as a consumer to pay 250+ to go United? Not really... if I sit in coach on United, the level of service is roughly equal, thanks to cost-cutting measures (didn't NWA find they could save $11 million a year by eliminating those tiny little bags of pretzels?) So unless I want to sit first class (and pay even more) for the service, I am going to go the cheapest way possible. The thing is, you can't BLAME the LCC's. Sure, if you're selling lemonade on your street corner for 50 cents a cup, and you're making money, and I decide I want to get in on that action and open up a competing stand across the street and sell for 35 cents, you're going to be p***ed, but I have every right to do so, right? A free market economy has always been based on the concept that prices will be determined by supply and demand. If there is more supply of an equal product, prices will naturally come down. The only way to sell successfully at a higher price is to have a superior and thus unequal product, or a monopoly on the market. As we have seen from the elimination of creature comforts and "perks" like meals in coach, nobody is offering a truly superior product. Maybe the problem is that the average-joe consumer never felt like those perks were really worth paying extra for. Hence why most money is made on the business traveller, who spends half his life in a shiny cramped metal pressurized tube, and IS willing to pay to be that much less inconvenienced. As far as market monopolies go, it still exists at the "regional" level, but enough people are willing to drive to a major airport to avoid taking the "puddle jumper" that it isn't of much help to have a lock on the market at small outstations, either. But I digress...
So to continue to operate domestically, and feed their international routes, the Legacies have turned even more than before to an ALREADY EXISTING system. It is cheaper for them to pay a regional airline cost plus 5 or 10 or whatever percent to fly an RJ of some type even when the seat capacity is close. Regionals have always been around, yes as a stepping stone, and yes, paying "subpar" wages in comparison to mainline wages. So the majors are taking advantage of the market forces and utilizing the multitude of regional airlines, who are for the most part now independantly owned and are all bidding against each other for this flying. This is basic economics, people. This so-called "race to the bottom" is a natural economic result of competition, like it or not. This has little to do with ALPA "holding the line" and more to do with oil at $70 a barrel, the absence of government subsidy, and deregulation. Airline managment is desperately looking for ways to cut costs, because they can't afford to lose business by raising prices. Unfortunately for us as pilots, after they get rid of the peanuts and the sodas and the seat pockets (like Ryanair), and contract with the regional carrier that bid at the lowest acceptable price and service, they pretty much only have the employees to go after. Until WE are a low-supply commodity, our supply-demand curve will never move upward to provide us a better salary. So while you're flogging the usual targets of managment, regional airlines, and (dare I say it, knowing I'll get flamed) non-union outfits, you might as well blame your next door neighbor, who won't pay more than $300 bucks to fly intercontinental, and your former students who kept you employed as an instructor because THEY had the aviation dream, too.