Trossie
I didn't say it would stop airlines going broke. That happens whatever system you go for.
A seniority system isn't perfect, your second point is valid in that it both discourages and penalises pilots that want to move airlines. But, to balance that, it provides a stable basis for a long term career in which there are few options of advancement. Fo-Capt-Training Capt (plus a few bolt ons for management roles for the very few). IMO it also motivates pilots to band together and work for a common cause, the protection of their status and bank balance. Very very few things motivate pilots (once they are in their shiny jet) other than protection of their T&C's. A dog eat dog system bring out the worst.