ADD NEAR-INTERNATIONAL DESTINATIONS
The larger planes described above also allow for more flexibility with routes over water, such as the recently added Caribbean destinations. These near-international destinations offer significant growth opportunities for Southwest if they can maintain the same low-cost structure that has made them so successful. AirTran already has access to some of these markets, which should help Southwest transition to full service. Southwest is also in the process of revamping the technology behind their reservation system so as to facilitate reservation to international locations.
Furthermore, aside from regulatory issues, Canadian markets could be accessible and profitable much as many of Southwest’s U.S. markets are. Finally, Southwest has had a codesharing agreement in Mexico with Volaris since 2008. This has allowed them to assess the feasibility and market demand for a number of markets, and if the regulation and infrastructure costs are not prohibitive, Mexico could be another source of serious growth, in addition to the already developing Caribbean service.