As was mentioned, I am by no means a fan of the current situation. It may seem unethical, but is it not a tough decision needed to be made to keep everyone employed in a profitable lo-co airline. If they need to save millions to stay in business, this is one way of doing it - and probably the only quick way of doing it. If they don’t, how can they expand in the future (100% contracts etc for us) or prevent themselves becoming another XL?
The British Forces - since you mentioned it - are currently undermanned, but are still cutting back troops and cancelling their orders for much needed modern equipment. By not recruiting, closing stations, extending the life of poor equipment, giving jobs to contractors, back-to-back tours etc...are they not doing the same?