It happened in 2007-2008. Pay didn't go up though, minimums just went down. Now minimums can't go down. Those no-crew cancellations were at the root of Mesa Air Group's downfall, as they led to Delta cancelling our CPA, which led to Mesa filing bankruptcy. To think it could have all been avoided if JO paid his pilots slightly more.
ALPA, or somebody, should give a class on this chain of events because it is really remarkable. Mesa/JO doesn't want to spend the small amount of money to pay industry standard wages and benefits so he ends up spending many times more than that just on training costs (50% pilot attrition in 2007, ~20,000 sim hours) and since there is a max out point in the training bottleneck he can't even get the replacements trained in time, loses on time and completion metrics and runs the entire airline with no backup anything just to get by and this ends up, months later, causing us to fall below performance metrics and having the Delta CPA cancelled.
For want of a competitive paycheck a pilot is lost,
For want of a pilot, a flight is lost
For want of a flight, a capacity purchase agreement is lost
For want of a CPA, the airline is lost!