The purpose of this paper is to explore the relationship among perceived service quality,rnpassenger satisfaction and behavioral intention through a case analysis of Ethiopian Airlines. Arnstructured questionnaire was developed. The hypotheses were simultaneously tested on a samplernof 304 customers out of 385 distributed, giving a valid response rate of 79 percent. Severalrnanalytical techniques were used to assess the relationships among the variables underrninvestigation such as paired sample t-test, simple, and multiple linear regressions, structuralrnequation modeling and importance performance analysis. Hierarchical regression was used tornassess the mediating role of passenger satisfaction on the relationship between perceived servicernquality and behavioral intention. The applications used to analyze and examine the hypothesesrnare the Statistical Package for Social Sciences V.21 and Analysis of Moment Structures V.21.rnThe findings of this study have shown a significant effect of perceived service quality andrnpassenger satisfaction on passengers’ behavioral intentions at the level of (α ≤ 0.05) as well as arnsignificant effect of perceived service quality on passengers’ satisfaction at the level of (α ≤rn0.05). The mean scores of passengers’ perceived service quality of Ethiopian airlines for all thernnine dimensions range from 3.16 to 3.97 indicating that passengers feel that quality of servicernbeing offered by Ethiopian airlines is more than average. Yet, the result of gap analysis showsrnthat there is still a significant negative difference between perceived service quality andrnpassengers’ expectation. The IPA, a two-dimensional grid, is broken into four categories tornhighlight important areas for improvement to enable each of the perceived service qualityrndimensions to be plotted into the grid. It is a clear and powerful evaluation tool for EthiopianrnAirlines to find out attributes that are doing well and attributes that need to be improved, whichrnrequire action immediately. The results are useful in identifying areas for strategic focus to helprnthe airline’s future customer service strategy. As evident from the finding section that the studyrnwas conducted in Ethiopia only, applicability of the results in other countries may resultrndifferently. Further, as the study is conducted in the airlines industry, application of the same inrnother industries, like; education, financial, and health may not come up with the same findings