Delta/Northwest Merger

After much anticipation, Delta & Northwest airlines have agreed to a merger deal that would unite the Nation’s number 3 and 5 airlines. This is potentially dangerous for the passenger’s pockets since they will have more control over industry prices. Should the government restrict the deal? I think not. Considering that the greater good of the industry is at stake, the government should try to find and help these two carriers achieve a deal that will make the profits sustainable without raising prices.
I think these two carriers can find synergies that will make the operations more efficient by using their combined knowledge and targeting more markets. They currently operate in two different regions, therefore, they will not be able to raise prices in either region if the merge. The problem will be if the have to lay off employees or change labor cost. The different articles that mention this subject argue that the merge will cause pilot salaries to change and that Northwest pilots will not be able to agree with the proposed salaries. The deal will not be fair for the pilots of Northwest that have more seniority. It seems like there is some discrimination happening against the more senior pilots. If they can resolve this issue and find a suitable deal for both work forces, I think the deal should go through and enable these companies to try to become profitable. It will be better to have one bigger company than having two companies that could possibly go out of business.