By Associated PressHawaiian Airlines and Alaska Airlines passenger jets at LAX. MUST CREDIT: Eric Thayer/Bloomberg
SEATTLE — Alaska Airlines closed its $1 billion purchase of Hawaiian Airlines on Wednesday, a day after the federal government removed the last major regulatory obstacle to the deal. Alaska will also assume about $900 million in Hawaiian debt. Alaska says it will keep Hawaiian as a separate brand, elimiinating the need to repaint planes.to maintain current levels of service on key routes within Hawaii and between the island state and the U.S. mainland where they don’t face much competition.
Alaska and Hawaiian also agreed to a handful of consumer protections, including not lowering value of frequent-flyer rewards as they combine their loyalty programs and promising to compensate passengers for cancellations and significant delays that are the carriers’ fault. Seattle-based Alaska Airlines said those conditions were similar to its plans from the time it announced the deal in December.
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