| Summary: | Service quality has become prime part of all highly developed organization's strategic plan. Higher attention on service quality has resulted in increasing profit of an organization. Airline services has possesses all the features of service industry such as tangible, reliability, responsiveness, assurance and empathy. This study was to examine the relationship between perceived service quality, customer satisfaction and behavioural intentions in airline industry. The objective of this study were to examine the relationship between perceived service quality and customer satisfaction, to examine the relationship between perceived service quality and customer's behavioural intentions, to determine the relationship between customer satisfaction and customer's behavioural intentions and finally to determine whether customer satisfaction mediates the relationship between perceived service quality and customer behavioural intentions. . Demographic factors which were gender, age, income and frequency of flying used as moderators to test the relationship between the variables. This research conducted on the domestic Air Asia passengers at Sultan Ismail International Airport (Senai, Johor). 200 questionnaires were distributed to the passengers at the boarding area and 163 questionnaires collected successfully. Using the modified SERVPERF as a measure, this study asked the passengers to complete a service quality survey to express their perception on the services and also their satisfaction and intentions towards the services perceived from Air Asia. Therefore, the passengers perceived service quality and customer satisfaction in airline industry can be measured. A sample of 30 questionnaires was used to conduct a pilot study which revealed a statistically significant relationship using Cronbach's coefficient alpha. The finding shows high reliability to all items in the modified questionnaires. Pearson Correlation analysis pointed that service quality and customer satisfaction had a direct positive effect on customer's behaviour intentions. Multiple Regressions indicates the significant level of the independent variables with dependent and intervening variable. Hierarchical Regression Model highlighted customer satisfaction as a significant mediator of behavioural intentions. Possible interpretations, limitations, and implications for marketing specialized are conversed.
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