Macbook Air 13 Mid 2011 recovery issue...

Hi

i've been given is Macbook Air 13 Mid 2011,when turned on i'm presented with a folder and a question mark.

So i've created a bootable USB with Yosemite, after booting into recovery a progress bar appears,but at about 10% macbook down shut down.
I've done a hardware test everything comes back good.

Would appreciate if someone can enlighten on what is actually wrong?

Thanks