Abstract
In service industry, service quality and price have an important role in influencing customer satisfaction. This paper serves to add the knowledge by improving the understanding of howservice quality and price affect customer satisfaction in full service airlines and low costairlines. To test the hypothesis, data were collected using cross-sectional approach fromconsumers of both full service low cost airlines. Using self-administered questionnaires, 400respondent data (200 data from each airline) was collected using incidental sampling methodfrom Jakarta and Bandung. The results of data analysis show that, in overall, full serviceairline customers are more satisfied than that of the low cost airline customers. Further,regression analysis on low cost airline data shows that the promptness and accuracy of service, employee attitudes, and price significantly influence customer satisfaction. While infull service airline physical evidence, the attitude of employees, and the price are significant predictors of customer satisfaction. This study underlines that the service quality especiallythe service employees' attitudes and price are factors that should be given more attention for developing customer satisfaction in both types of airlines, although their competitive strategyand target market are different.