The MacBook Air does not have an optical drive built in. To install software you have two options, either use an external optical drive that you connect via USB or use Remote Disc.

So what is Remote Disc? Remote Disc basically lets your MacBook Air borrow an optical drive from another computer that is hooked up to your wireless network. The point to note is that the host computer can be either Mac or PC.
However, you will not be able to burn CDs/DVDs via Remote Disc. The procedure entails downloading the Remote Disc software from Apple's site and installing it on the host computer.

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