I had this same problem, maybe skipping Disk utility inadvertently: wouldn't go further than spinning gglobe and confirmation of Wifi connection until error message appeared After trying to reboot.
i Took the MBA over to my Dad's house, where there's VM fast cable, and connected to Wifi there: Bam, straight onto progress bar and less than an hour later I'm through DU with OSX Yosemite up, running and registered with just the Pages, iPhoto etc. Apps left to download.
I guess sometimes certain ISPs don't do well with Apple servers, for reasons unknown to me, and it was certainly worth a short journey to try another connection before writing off the machine or trying to do stuff with gigabit cables/adaptors or flash drives, which is beyond me!