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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 behavioral 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 behavioral intentions, to determine the relationship between customer satisfaction and customer's behavioral intentions and finally to determine whether customer satisfaction mediates the relationship between perceived service quality and customer behavioral intentions. This research conducted on the domestic Air Asia passengers at Sultan Ismail International Airport (Senai, Johor)in Malaysia.