Working for a smaller airline may get you some headway into the interview process, simply by getting to know the right folks.
Here's a case in point. Back in the mid 80's, there were lots of folks hired by the original Piedmont Airlines from within the company. Flight attendants, mechanics, engineers, the list goes on. In fact, they had an arrangement with their FBO division (now Piedmont-Hawthorne) to pay for flight time via payroll deduction to the tune of 25 bucks a month. People were getting their ratings while working there, costing them practically nothing, building hours, and getting to know key people in flight ops. I personally know of 3 guys who would go and fly the 727 sim after hours since they knew a couple of sim instructors. One guy in particular had over 25 hours of free 727 time for his interview evaluation ride. But those days are long gone now since USAir came along and destroyed that whole culture.
Anyway, my advice to you is to get to know as many key people that you can at the airline of your choice. By key I mean those involved in the hiring process. Just because a guy is a Chief Pilot for XYZ airline, he may not have any clout with the human resources dept. If he does, then he's definitely a good contact to know.
But most importantly, keep flying. Work your tail off. Realize that it may or may not work out for you either, but don't stop trying if that's what you really want to do for a career. Nobody is owed anything in this profession. It's hard work, a good attitude, and a little luck. And a lot of it makes no sense either. I've seen some of the best people get turned down for their dream job, and then I've seen some of the most unlikely people get the job of a lifetime. It's just a little slice of life....
Good luck with your future career.