With the lower and lower profit margins, it is just a matter of time before most regional flying will become wholly owned. The fact of allowing another administration to earn a profit that does not benefit the existing shareholders of the mainline company will eventually become an extremely hard sell...

The long long term results will be the eventual consolidation of the mainline companies with their regional wholly owned airlines....
1st the BOD's and shareholders will demand the money stay in house
2nd they will demand to reduce costs by consolidating services.....

Running two, or three, part 121 carriers side by side may help when you negotiate contracts, but if you compare the cost savings from only needing on mx dept, one dispatch, one SOC, one training center, and only one administration... the long term savings are incredible....

The smaller planes will become the entry level aircraft, and the current payscles will just stay about the same.... but the days of outside contractors being able to make a profit will eventually come to a close, as more mainline companies seek to keep every scrap of potential profit to themselves.