Shell's move could be a signal of better times. Shell's scrip program saved it roughly $3 billion in cash distributions each year, about a quarter of its total dividend payouts. That neatly matched the potential hit to Shell's cash flows from a $10 fall in the oil price and, the company argued, provided a buffer against price or operational weakness. The fact that Shell is ready to give up that protection could auger well.
Shell will presumably continue to repurchase class-A shares as long as they trade at a discount to the class-B shares, which they undoubtedly will due to the 15% Dutch tax withholding on dividends from the class-A shares (but not the class-B shares).
Eventually, Shell hopes to consolidate the two classes of shares into one, but this will require the approval of the Dutch government.