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: 
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.
If you restrict your AIR application from distribution, wouldn't that make it impossible for you to give the application to your friend? The only language-agnostic way I can see this be done with any application is that you have your friend come over and have a look on your computer.

If you are keen on making the AIR application "yours" you could try to [sign it digitally](http://www.adobe.com/devnet/air/articles/signing_air_applications_print.html) but getting a certificate costs loads of money.