What are you doing, reading the RAA talking points?!?
The industry won't die, people and products still need to move and will. Some carriers may die, and if they do they probably needed to go anyhow.
Let's have a little math fun, shall we? [note, I haven't flown for a regional, so I'm trying to be pessimistic in my numbers, feel free to correct me if I'm wrong]
Let's say we're going to have to bump FO pay from $17K to $50K to attract applicants - that's a difference of $23K.
Assuming our FO flies 180 days in a year [sounds low to me], that works out to a pay increase of about $128 per day each day he works. Let's assume he averages 5 legs a day [again, I think that's low], that works out to about $26 per leg. Assume an 80% load factor (and I haven't been on a flight recently that was only 80% full) and that works out to roughly 65 cents per passenger per leg. If my numbers are indeed conservative, and the FO works more "revenue days" a year, averages more than 5 legs per day, or has a CRJ or ERJ with more than 40 passengers, the costs are further diluted, resulting in less expense per passenger.
Now, let's give the Captain a similar bump, now we're at $1.30 per pax. Go crazy and double that to account for other compensation expenses that I haven't included (taxes, 410K match, etc), and we have $2.60 per pax per leg. Now double it again just to be safe and account for reserves and anything else you care to throw in with the kitchen sink. That works out to $5.20 per passenger per leg, so assuming the average pax flies two legs, they are going to have to increase fares less than $21 for the round trip to cover the cost of increasing wages. Remembering that all regionals are going to be effected by this, I don't see a $21 R/T having that much of an effect. I'm sure there will be a few people who won't go to see Grandma for thanks giving, but on the whole it just isn't that big an increase - if a family of 5 was going to Disney, that's a $105 increase in their R/T. Given what such a trip costs in the first place, that's not much of an increase. I'm doubting the average business traveler will notice a $21 increase per leg trip, which works out to $1050 increase per year if he travels once a week.
I just don't see it affecting passenger traffic that much.