Basically what you did was correct. You have to copy or drag/drop the new AFPD icon into the Application folder. The installation instructions can be found in a readme file:

AeroFly Professional Deluxe
Version 1.11.07.23
2009-03-18
IPACS (www.aerofly.com)

AeroFly Professional Deluxe is a rc-model aircraft simulator for Mac OS X (10.5).

Please refer to http://www.aerofly.com for further information, updates and free downloads.

System Requirements
AeroFly Professional Deluxe requires an Intel based MAC computer running Mac OS X 10.5 (or newer) with an OpenGL 2.0 capable 3D graphics card from NVIDIA or ATI/AMD.

Installation
Do not run (double click) the app from this disk image. Instead copy the folder AeroFly Professional Deluxe to any place you like (the preferred place for AeroFly Professional Deluxe on Mac OS X is the User application folder ~/Applications).

Notes for the MAC OS X Version
Please note that the current version of AeroFly Professional Deluxe does not support music playback.
This MAC OS X Version includes the AeroFly Professional Deluxe AddOn's 3, 4 and 5. In order to use the models and sceneries of these AddOn's you need to activate them first. To activate follow the instructions within AeroFly. When asked for a Product-Key, type in the 16 digit Product-Key that is printed on your AeroFly Professional Deluxe DVD.
In order for AeroFly Professional Deluxe to work smoothly on slower 3D graphics card, the default texture quality setting is set to Medium. For maximum visual quality go to the Options menu with AeroFly Professional Deluxe and set the "Texture Quality" to High.