How on Earth are people who have never had a moments involvement with a professional pilots career somehow responsible for the current requirements of the industry? Of course they are not to blame. If you read what they have written, most are concerned that the debt burden, or the raising of surity would preclude an application. What exactly are they supposed to "be ashamed of themselves" for?
We have just taken on around 10 cadets from what you describe as a "scam" and we have taken on a similar number of experienced pilots. In both cases the contracts are (untypically) temporary and seasonal. The likelyhood of them (all) becoming permanent, depends on the market conditions prevailing at the end of the current season. As such, there is obviously a significant degree of risk and uncertainty. However that risk affects both pilot groups.
The experienced recruits are on a starting salary of around £4000 per month before tax or additional emoluments.
The cadets are on a starting salary of around £3150 per month before tax or additional emoluments.
After around 24 months both groups merge onto the same salary band, which by then is around £4300 per month before tax and additional emoluments.
The cadets with training loans can opt to have the company deduct the loan repayments from their salary (which is tax advantageous) to the tune of £1000 for 84 months (assuming that is the sum they have borrowed.) That then reduces their salary (as given above) by £1000 per month gross for 7 years (unless they elect to settle the loan earlier.)
So a new cadet first officer would expect to earn £2150 a month for the first year plus allowances less taxes, with their loan repayments repaid by the company. That is a net wage (after loan repayments, tax and National insurance) of around £1770 per month plus emoluments. Typically I would expect those emoluments to include a cash element of around £530 per month conservatively. Giving a take home wage of around £2300 per month in the first year. Meals at work provided, free uniforms, free car parking, insurance and health benefits.
It is not a fortune, but that is year 1. This is a first officer with a mere 250 hours or so, who can expect to amass around 700 hours a year on a modern jet transport. Their medicals, and renewals will be paid for, and there is a very good chance (based on past trends and current forecasts) that they will have their contracts made permanent in the future. However it has to be stressed past performance is no guarantee of future benefits. These pilots can then expect staged salary increases on an annual basis up to a figure of around £10,000 per month before tax and plus emoluments, over a 20 year career.
Now at the cadet entry level, managing on a first year take home wage of £530 (US$ 860) a week may not be a kings ransom, but it is most certainly liveable. We have been taking cadets on similar terms for over a decade and almost all have been kept on.
Obviously different companies have different terms and conditions that suit themselves and the marketplace. There is no guarantee whatsoever that somebody graduating from one of these schemes will find an employment placement in a short timescale. There is no guarantee that somebody will pass the course, (although there are some limited financial safeguards in the event of none voluntary termination I believe.) In recent years a lot of graduates have found themselves sitting in so called "Holding pools," which simply means there are no companies to place them with in the short term. All of these risks need to be considered very carefully by anybody borrowing money, or otherwise considering embarking on this route.
It is my considered opinion that anybody considering this route satisfies themselves that in the (quite likely) event of not obtaining any sort of airline placement at the conclusion, for some considerable time, has the resource, guarantors and ability to be able to repay the loans in any event.
It is most certainly a risk, but a "scam"? Of course it isn't.