The act of holding a animal up as a punishment limiting their movement.
Person 1: My fat ass cat stole my chicken nuggets.
Person 2: Put him in air jail.
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The cat of holding your short girlfriend in them air to limit her movement.
My girlfriend tried to attack my friend so i put her in air jail.
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Holding a pet, most often a cat or a small dog, in the air for a while and refusing to put it down. It's a humorous, lighthearted "punishment" for something (usually minor) the animal did.
Luna, if you scratch my hand again, you'll be in air jail.