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Supply and Demand.  Fewer pilots = lower mins (especially when they're not paying community median or better salary).  Actual difference in experience  betwee 1700 - 2000 hours is probably not a big deal (look what Part 121 did with ATP and hours).  Much more important is the person and what they did in that time.  That particular company had to lower the mins becuase it wasn't attracting any pilots willing to accept the lower than median salary for a SPIFR job. They were once competitve but not so much anymore.