Physical evidence has been widely accepted as variable that has impact
on satisfaction, specifically in airline service. However, this study
showed some opposite result for low cost airlines in Indonesia. It
revealed that physical evidence has no effect on the passengers’
satisfaction but the fares and its service quality to passengers.’ This
study collected sample of 317 passengers from commercial domestic
flights at terminal 1, 2, and 3 at Soekarno Hatta airport in Cengkareng,
Indonesia. The variables used in this study were: fares, service
quality, physical evidence, passengers’ satisfaction levels and repeat
buying. Two variables, i.e.: service quality and physical evidence were
treated as second order. This study used Structural Equation Modeling
(SEM) for verification analysis. The result revealed that there was no
effect of physical evidence on the passengers’ satisfaction. It also
found that repeat buying demonstrated the passengers’ satisfaction.