In this article, we model and develop effective cancellation schemes for passive intermodulation (PIM) distortion induced by external objects in the vicinity of the transmitterreferred to as air-induced PIM-in frequency-division duplex (FDD) multiple-input-multiple-output (MIMO) systems. PIM is interference generated from the transmitted signals undergoing nonlinear transformation, which, in FDD systems, may cause desensitization of the receiver chain. First, we present a general model of the received air-induced PIM signal, with an arbitrary number of dual-carrier TX chains active and an arbitrary number of PIM sources causing interference, on all the intermodulation frequencies. Then, the derived model is used to develop a cancellation scheme based on a complete set of basis functions (BFs) in a rank-2 dual-carrier MIMO system with four active carriers. To alleviate the high complexity of the aforementioned scheme, we then propose a novel alternative cancellation scheme with much reduced complexity, leveraging on the physical modeling of the system, which is capable of handling any number of PIM sources in the system. RF measurementbased experimentations carried out with real-life equipment evidence excellent cancellation capabilities of the complete BF model, which can be retained with much reduced complexity with the proposed alternative technique.