They have to be in range and it's somewhat hard to accomplish that when you can't see what the radio range is.
Typically I opt for just attaching them at the army group level (since that's a fairly large range - and it gives them the supply bonus that the general's skill provides). Plus I can move them around without worrying a ton. *Sometimes* I'll attach them at army level if they're going to be used as part of a static defense - that is, if we're pretty much intending not to move, may as well put them in or near the same tile as the army HQ - plus they'll get the ORG bonus from the army commander's skill.
The Main thing with air forces, and whether they perform well or not mostly boils down to your stack sizes and compositions.
So, I'll give you a few rules of thumb:
1. Never put bombers and fighters/INTs/CAGs in the same stack - when you send your bombers to bomb, if they are attacked and have fighters present, they will stick around to fight, and thus take more damage, whereas if they're purely bomber stacks, they will get hit, but will (almost) immediately flee.
2. If you find that you *need* to do a lot of bombing of some sort, but your bombers keep getting bounced by fighters - set your missions to night only - your bombers will do less damage, but they'll also take less damage and will be able to do do more bombing runs before needing repaired as a reslut.
3. Make sure your air generals have at least 2-3 stars (you can do this manually) that way if they accidentally end up in the same province as another wing, they won't cause a massive stacking penalty for being over the command limit.
4. The ideal stack size ranges from 3-5 - you'll incur a stacking penalty, but the penalty is offset by the fact that you're putting more firepower in the squad, and also damage will be spread out more evenly across all the units in the stack.
When you do your research, make sure you're researching *at least* pilot training, but, leadership allowing, it's helpful to have ground crew training (will make org come back faster), and an efficiency tech (interception, ground attack etc) - they'll be most effective then.
Other quality of life tips:
1. Make sure your air units are being upgraded - differences in "upgrade tier" can make a huge difference.
2. There is no reason to put an air general with a trait on any of your INT units - excepting night-flyer, because all the other traits only have to do with bombing and not air to air engagements.
3. Make sure you're utilizing air fields that can repair at least *most* of the units in your stack, or it will take *forever* to repair and get you back in the air.
4. Mission types also play a big role in how much damage you take. I find that it's best to use air units on a case by case basis - if you just set them to attack a province and forget about them for a while, you'll come back some time later and find that they've been completely crushed - the same goes for setting very large mission areas - the bigger the area, the more likely you are to be engaged multiple times. That is, of course, if you actually care about your air units lol.
5. Planes are made for fighting. Don't worry you have a bunch of beat up wings, as long as you deal some good damage before they have to sit around for a while lol.
6. The Infrastructure level in the province in which your air field is located will influence how quickly your planes regain org. So for example, we have several planes in a level 1 air base, but with 10 INFA, they will recover ORG quite quickly - they just might not repair quickly. Whereas 1 plane in a level 10 air base in a "red" infra province - will recover org *very* slowly, although they'll repair quickly!
7. Only put "tank buster" generals on CAS units - they make everything they're attacking "harder" - which is what CAS are designed to hit *really* well since they have huge hard attack values - but every other kind of bomber will suffer as a result - as they typically are meant to hit soft targets (and have much higher soft-attack values). Making things harder will *hurt* them - so keep Tank Busters off of your TAC and MRF wings.
8. Air combat gives almost no experience to the general - so keep your most desirable generals *off* of wings you intend to use purely for air to air combat.