Until there is a natural throughput of pilots triggered by airlines beginning to recruit pilots again, the FI employment market will remain stagnant. There is simply not enough demand from the general public wanting to learn to fly these days; many who do take the Florida route...
I have been advised that 'indications' suggest that some airlines may will have to start recruiting again in the not too distant future; however, Bliar and Dubya's actions concerning Iraq may well knock that for six. So until there is a definite and noticeable resumption of airline recruiting, I would suggest that the FI market will remain much as it is for the foreseeable.
Incidentally, the airline pilot world is now seen as offering neither the kudos nor rewards that it once did. Beancounters and their scheduling computers ensure that pilots are worked as hard as the rules allow, crews are locked into the flightdeck for the whole trip - gone are the days of inviting passengers up to the flight deck or strolling down the back to chat to the punters. Night stops down route are fewer; the opportunity for those 'room parties' of yesteryear are even fewer - either the press are lurking itching to catch another pilot or cabin crew member having a drink or the crew are on minimum crew rest in any case.
I am not a commercial airline pilot; these comments are made by those I know who are. For example, an ex-Trident Number One told me about the happy days of Manchester to Paris, night off in Paris, then back again the next day after a night on the town. Compare that to the multi-sector 20 minute turnround era of today - and it doesn't seem like much fun any more. Although aircrew being aircrew, they'll always find a way....
Regrettably, I feel that the 'cheap as chips - take it or leave it' attitude displayed by at least one of the low-costs is ruining the image and reputation of the airline world. It was OK with buzz - at least you were allocated a seat, you were looked after by a happy team and there was even an airline lounge at STN. But another STN-based airline treat their passengers like cattle; even though they are very cheap, things have been taken too far in my opinion. The glamour has gone out of flying - especially when you're treated no better than a bus passenger!
It must have been marvellous once; an ex-Argonaut/DC7 pilot I know told me that when flying the North Atlantic, they'd first meet for breakfast at the crew hotel - everyone had to stand up when the captain arrived! Then when they felt ready, they'd take a taxi to the aerodrome, do their flight planning, tell the airport when to send the passengers out to the aeroplane and ultimately set off. During the flight the crew and passengers would be served several meals - not just a tray with plastic cutlery! The captain would spend much time chatting to the passengers and everything was very civilised.......ah, nostalgia isn't what it used to be!
Sorry to have rambled on - no, the FI market is indeed saturated with inexperienced 'hours builders'.....