Many pilots at wholly owneds sought employment at such companies as a way to either flow up or get preferential hiring. Probably not the smartest thing to hope for but it made sense at one time or another.
B scale.. Absolutely. Include the whipsawing and we're talking C and D scale sadly enough. It ALL goes back to violations of scope or the senior mainline folks giving it up for personal benefit. ALPA not handling it too well at times shouldn't go unmentioned either.
People need to wake up to the reality of the unfortunate situation. 50% bankruptcy law abuse and 50% arrogant self centered pilot syndrome. Business schools teach classes on utilizing such effective tools.