This paper is an overview of the activity and state-of-the-art in the field of plasma aerospace applications. Both experimental results and theoretical ideas are analysed. Principal attention is focused on understanding the physical mechanisms of the plasma effect on hypersonic aerodynamics. In particular, it is shown that drag reduction can be achieved using a proper distribution of heat sources around a flying body. Estimates of the energetic efficiency of the thermal mechanism of aerodynamic drag reduction are presented. The non-thermal effect caused by the interaction of a plasma flow with a magnetic field is also analysed. Specifically, it is shown that appropriate spatial distribution of volumetric forces around a hypersonic body allows for complete elimination of shock wave generation. It should be noted that in an ideal case, shock waves could be eliminated without energy consumption.