Remember NorthWest Pilot has to cut 40% of their salary to protect from bankruptcy?  Now, this year, US needs about 12,000 additional Pilots and industry having hard time to hire new pilots because of competition from overseas carriers and the U.S. military deployment.  

Foreign Airline offers tax free salary and better benefits to hire US pilots since there is more flight into US and other countries.

It is good news for pilots because reduced pilot salary will be competitive and better benefit but sucks to customer because airlines has to find their way to maximize their profits.

Commercial air travel has grown 8 percent in the past five years, to 740 million passengers in 2006 from 683 million in 2001. The FAA expects the number to jump to 1.2 billion passengers by 2020.