Whenever ANY company issues more stock for whatever reason, the outstanding share notional value becomes diluted. What that means is when a stock splits or there is a new issue in addition to the outstanding stock, the net worth after fees are paid, is thence divided amongst the amount of NEW OUTSTANDING COMMON SHARES. As Mad Cramer of T.V. fame would concur, nobody in their right mind would touch airline stock.

Death throws, to a well deserving air group, comes to mind.

To issue more stock so close to the verge of bankruptcy, extends opportunities for upper management to suck the last remaining ounces of life out of the dying beast,
while allowing for some market savvy stock flippers to sell them short the next time they break the dollar resistance level, kind of like a cheap plasma administered after a loss of blood.

It might as well be Skydrol.

Bottom line is that this proposal to float more of their crappy shares is a FURTHER INDICATER that they are sinking fast.