The present research article has discussed comprehensively on the strategic policy decision adopted by the aviation sector which has posed many challenges on the public sector airlines like Vayudoot Limited, Indian Airlines Limited and Air India Limited. An attempt was made to study the evolution of the airlines in India in various phases like pre nationalization, post nationalization era of induction and implementation of economic reforms in the aviation sector with specific reference to the airline organizations. The significance could be further stated that the airline sector generates employment directly and indirectly to many people, contributes for increase in foreign currency, global integration, also contributes for the development of the other sectors like hotel, car rentals, tourism and development etc. The research design adopted for the purpose of this study was basically descriptive in nature, exploratory, diagnostic / analytical. The data collected was basically from primary sources like administration of structured questionnaires on the subjects those who were reasonably aware about airlines. The sample size is 120. The secondary sources referred were published sources. Simple statistical   techniques were employed.  The findings have resulted in significant improvement in the performance. An attempt was made to fill the research gap which provides the scope for further / future research. The systematic review of the SWOT- Environmental Analysis on a continuous basis contributes significantly for the overall Organizational Development i.e., Productivity.