The difference is, and why Apple called it iPad Air, that it is 28% lighter. That is a whole lot and you defiantly feel the difference in terms of weight, but also thickness which is now 20% reduced.
Reduced thickness and the fact that they have made the bezel smaller makes the iPad Air only weigh 1 pound.
The iPad also got a 9.7 inch display with 2048x1536 pixels, which makes the screen absolutely stunning to play games or watch photos on.

The last thing I want to mention is increased wireless connection. Apple WiFi is now two times faster so it has the capability of downloading 300mb/s.
Compared with the older iPad, the only thing that has changed is the size and performance. If you were not satisfied with the performance of the iPad 3, than I suggest you go out and take a look at the iPad Air. If you on the other hand find the performance on the iPad 3 satisfying, I don't think there is a point of buying the iPad Air. Besides a more light weight and thinner body, it is pretty much the same.
This is my conclusion, but I am excited to hear what you think about the iPad Air, so please leave a comment in the commons below.
Check out the iPad Air at www.apple.com