Ron Ricco,

My concern about dividends, or stock buy backs, is that those choices mean there are no better choices to deploy that capital. That means upgrading the inefficient mainline narrow body fleet (and the 717 will, on date of arrival be near the bottom of the industry in efficiency). That means we aren't spending the money on right sizing our international fleet with an aircraft like the 777-300 in significant numbers. It means we are not going to make any competitive moves which might require an investment in that market. It means we will continue to pay interest on 10 billion dollars or so in borrowing. In other words, it means the Company has no better idea what to do with cash than to give it away, plus ~ 8% interest.

I am encouraged that Delta has the available cash flow to fund what would be a "capital project" in either a pre merger NWA or DAL.

IMHO this dividend is a bit like winning a yacht race. It is bragging rights to a couple of rich buddies, but doesn't sell widgets.

The one tin foil hat scenario that makes some sense is that we are pumping the stock price in advance of a stock-swap type acquisition. That potentially could be a smart use of throwing cash out the window, priming the pump to leverage the market to make an acquisition relatively cheaper on an exchange basis.

If that theory is actionable it does nothing good, or bad, for us in an SLI that I can see.