Will a Delta-Northwest Merger Help Offset Increased Energy Costs?

As crude oil [US@CL.1  Loading...      ()] is at a new all-time record closing in on $115 per barrel and it is up almost 20% year-to-date, jet fuel costs have soared, and are up 25% since January 25th. 


The Delta [DAL  Loading...      ()   ] - Northwest [NWA  Loading...      ()   ] merger is an attempt, in part, to fight increasing oil prices as a larger entity that has growth outside the US. 
-Four smaller airlines have declared bankruptcy in the last few weeks due to jet fuel costs, the latest being Frontier Airlines [FRNT  Loading...      ()   ].
-Continental [CAL  Loading...      ()   ] and UAL [UAUA  Loading...      ()   ] are also rumored to be in merger talks.

Airlines:  A Tale of Mergers and Bankruptcy (Highlights Only - Full Story Here)
Delta Air Lines and Northwest Airlines approach a merger agreement that would create the largest airline by traffic.
-Bankruptcy, which allows reductions in labor costs, pensions, and the shedding of costly assets, such as planes and redundant routes, often helps potential partners realign their operations, though mergers are still often viewed as expensive and sloppy, especially if cultures differ. 
A Rundown of Delta and Northwest Bankruptcy History and Performance:
Northwest and Delta entered bankruptcy in September of 2005, and both emerged from bankruptcy in the Spring of 2007
Delta emerged from bankruptcy on April 30, 2007 after about 19 months, and is down over 50% since it left Chapter 11.
Northwest emerged from bankruptcy on May 7, 2007 after 20 months, and is down about 55% since it left Chapter 11.