One major morale issue they have with FO's is leaving them behind if there is an extra paying passenger. The quickest way to tick off a pilot is to bench him.

The major/regional airlines and the government need to start contributing to the cost of training commercial pilots. It is not really fair that a handful of part 135 operators with FO training pipeline programs have to bare the full burden of training CFI's for the entire industry.

One problem I see with Cape Air as a company is that their recruiters are always "looking." If you have to post an ad on 350 every 3 days, the odds are that the work conditions at your company are less then ideal.

They really need to overhaul their interview process. Interviewing 20 pilots at a time in the same room is a bad first impression. Another bad first impression is not having your CP or ACP at the interview. Someone that flies across the country to interview in person is going to be mad if they only get to interview with the 250 hour recruiter. That is what Skype is for. That is a good way to limit your hiring pool to a 300 nm radius.