Question: Is there any way through which i can restrict my AIR app to be further distribution?

Say I have make one AIR application and I give this app to my friend. Is there any way so that he can not re distribute this app to any new person?

Answer: 
There's nothing built in that will help you solve this, but two ideas come to mind.

One choice is to require a serial number on first startup. Validate the serial number against a server using HTTPS and then store it, encrypted, in the local store. You could then validate that machine's use of the serial either on the server, or by using something unique to the machine to encrypt the local store.

You could also possibly use client certificates, which would need to be installed on the user machine. The application could then validate against the certificate on startup.
This is a good question. A possible solution to this is certification. However i have a doubt here. Do you want your friend not to distribute this application + no secondary installation is possible with it.

Secondary installation means if your friends wants his system to format and reinstall the application. Do you want to support this?

If no then solution is easy.