Commuters tend to shift from public transport modes to private modes due to numerous reasons causing an increased demand for the road network. Ultimately, this movement has been reflected in road congestion, environmental pollution and higher accident rates. A main reasons for this movement is the poor service quality of the public transport service. Therefore it is very important to identify the factors affecting the satisfaction level of the bus passengers. This study investigates the satisfaction level of bus passengers with a latent variable model using the Structural Equation Modelling (SEM). Online and face-to-face interviews were carried out using a questionnaire to obtain the satisfaction level of the bus passengers on a five-point Likert scale. Model development and validation were done using SPSS AMOS statistical software. The results of the analysis reveal that driver and conductor behaviour, comfort level and service quality are significantly affecting the passenger satisfaction level.