Transport firms are recognising that service quality can serve as a strategic tool to enhance the "Value" of the "total transport service offering" in the eyes of customers, to differentiate the service offering from that of competitors and to foster customer satisfaction. This shows how important service quality is, and what effect it has in achieving passenger satisfaction and loyalty. Airlines are a major transport provider. A new competitive environment has been emerged where price wars, frequent flyer programmes and other innovative marketing initiatives have become the industry norm. Therefore, airlines have been forced to introduce service development and enhancement strategies to remain competitive (Kaynak et al. 1994). The development of the consumer- orientated marketing concept by the airline industry has been a response to changed environmental conditions, from a seller's market to that of a buyer's market. Airline passengers are becoming more sophisticated about flying and therefore have higher expectations. The homogeneity of airline services forces customer service quality to emerge as a principal factor in the design of a competitive strategy. Therefore, the benefits of offering a quality service (e. g., increase in first time customer volume, repeat business, the ability to charge higher prices that yield better profit margins and a reduction of marketing effort) are worth striving for. The success of an airline hinges upon its knowledge of its customers and its ability to devise marketing campaigns to suit the preferences of those market segments it chooses to target. This needs a careful identification of the most important attributes (dimensions) of their services that can satisfy passenger needs and an understanding of how to provide them in the best way to achieve passenger loyalty.