Front Seater,
Well put. I too have recently had the "stay/go" decision. I was all set for the latter when, upon being offered a job by a major defence contractor, it was suggested that staying put for 3-4 years was a sensible thing to do in this climate. Not only is there likely to be a big "pull" from airlines in 2-3 years (as, I hear, there is a rapidly diminishing number of people turning up at flying schools with the money for a modular ATPL course....) but also the Defence sector as a whole is in limbo awaiting the General Election and the inevitable Defence Review that will follow. If we're still embroiled in AFG during the Review, some sacred cows will have to be slaughtered and that will have a knock-on effect.
The key here will be the attitude displayed by the posters/appointers. If they get cocky and arrogant now, just watch the resentment build and people fly out of the doors when the recovery begins as the military, yet again, finds it on the opposite side to the airline sine wave. If, however, they start acting as genuine "HR" staff now then it could have a positive long-term effect on retention.