there is no direct way to launch exe from adobe air application . But you can use command proxy. Command proxy can interact with OS and AIR can interact with Command proxy . See this article for more details

http://www.mikechambers.com/blog/2008/01/17/commandproxy-net-air-integration-proof-of-concept/

download commandproxy from this link
http://code.google.com/p/commandproxy/

Hi John

I am not sure that this is exactly you need or not but may be help you....

http://www.adobe.com/devnet/air/flex/quickstart/interacting_with_native_process.html

Regards,
Virat Patel

Simply run below code in FlashBuilder 4 and you are doen with it.This will launch ping utility.Just replace "C:\\WINDOWS\\system32\\ipconfig.exe" with the path of your desired installed program such as MS World,Excel,etc.

<?xml version="1.0" encoding="utf-8"?>
<mx:WindowedApplication xmlns:mx="http://www.adobe.com/2006/mxml" layout="absolute">
	<mx:Script>
		<![CDATA[
			import mx.controls.Alert;
		private var processBuffer;
		private  var nativeProcess;
		private function executeCommand():void {
	   		// #1 check if u can exec native processes
	   		if (!NativeProcess.isSupported) {
		      	Alert.show("NativeProcess.is NOT Supported");
		      	return;
	   		}
		   // # get a NativeProcessStartupInfo object ready
		   var npInfo:NativeProcessStartupInfo = new NativeProcessStartupInfo();
		   //var file:File = new File("C:\\WINDOWS\\system32\\ipconfig.exe")
			
		   var file:File = File.applicationDirectory;
		   file = file.resolvePath('C:/Program Files/Microsoft Office/Office12/WINWORD.EXE');
		   try {
		      npInfo.executable = file;
		   } catch (e:Error) {
		      Alert.show(e.message);
		      return;
		   }
// get a output buffer
processBuffer = new ByteArray();
// create a NativeProcess object, add listeners and execute it (i.e start it)
		   nativeProcess = new NativeProcess();
		   nativeProcess.addEventListener(ProgressEvent.STANDARD_OUTPUT_DATA,onStandardOutputData);
		   nativeProcess.addEventListener(NativeProcessExitEvent.EXIT,onStandardOutputExit);
		   nativeProcess.start(npInfo);
		} 
	
		// handle output data
		private function onStandardOutputData(e:ProgressEvent):void {
		   nativeProcess.standardOutput.readBytes(this.processBuffer,this.processBuffer.length);
		}
		
		private function onStandardOutputExit(e:Event):void {
		   var output:String = new String(processBuffer);
		   trace (output);
		} 
		]]>
	</mx:Script>
	
	<mx:Button id="btn" label="click" click="executeCommand();"/>
</mx:WindowedApplication>