This paper deals with the evaluation of the civil aeronautics sectors since the 1930s in the background of Government intervention & technological changes. The paper has tried to contrast the active interference by European nations in the domestic aviation sector with the comparatively "hands off" approach of the US, and the success of each tactic. While it was clear that Government intervention couldn't substitute for a good understanding of the market, it has also been argued that active Government interference can be counterproductive. The other important dimension was the role of technology. It is clear that successful adaptation of the innovation for the market is more important for commercial success than the innovation itself. Finally, the paper also looks at the emerging trends in aviation, impact of WTO and opportunities for India in the sector.