AirView makes use of a technology known as Floating touch.
There are two types of capacitive sensors used for touch-screens, mutual capacitance and self-capacitance. Mutual capacitance makes multi-touch detection possible. Self-capacitance generates a stronger signal than mutual capacitance, which allows accurate detection of the finger further away from the sensors.
Floating touch works by combining these two capacitive technologies on the same touch screen, at the same time. Mutual capacitance is used for the normal touch sensing, including multi-touch. By using self-capacitance at the same time, a finger above the surface of the screen can be detected. However, since the floating touch technology depends on self capacitance, it's not possible to perform multi-touch gestures with the fingers hovering above the screen.
source: Quora