Service sector is the lifeline for the social economic growth of a country. It is today the largest and fastest growing sector globally contributing more to the global output and employing more people than any other sector. Due to growing competition and globalisation the concept of services quality has gained importance in recent years. To survive in this competitive situation there is a need to firstly understand the customer perception of service quality and then to effectively implement it. The present study is an attempt to understand the customer perception of service quality components in domestic airlines industry in India. The data is collected from 342 Domestic bound air passengers at Chandigarh, Delhi and Amritsar Airport by using convenience random sampling technique. Responses of customers were analyzed with the help of factor analysis. Eleven factors were extracted. The result shows that the Services available are the most important factor in forming the customer perception regarding service quality in domestic airlines industry. The findings of this paper will benefit the airlines companies to create better satisfaction to the customers.