The Dallas Morning News Airline Biz Blog reported today that Gary Kelly, the Chief Executive Officer and Chairman of Southwest Airlines, said in a communication with employees on Monday that “We have plans in the works for additional service to and from Mexico, so we’ll look forward to making those announcements just as soon as this agreement becomes fully effective.â€

Kelly is talking about a Bilateral Agreement between the USA and Mexican governments will allow greater air service between the two countries.  The agreement – which was voted in by the Mexican Senate last week – “modifies a 1960 agreement, aims to open up new routes for airlines to fly between the countries, and allow for an unlimited number of flights” says Reuters.

Kelley also reportedly told employees that “It’s pretty much done, but the bilateral agreement is not effective yet,†he said. “So just a note of caution as there’s still some diplomatic work to be done between the two countries.â€

Southwest currently serves four cities in Mexico: Mexico City (MEX), Cancun (CUN), Cabo San Lucas(SJD) and Puerto Vallarta (PVR).

Bottom Line:

We’ve speculated before that Southwest Airlines would be offering new service to cities in South America, but it looks like increased service to cities in Mexico will become the next international destinations served by Southwest Airlines.