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Is this unit capable of an air assault? If not, then why not? Have everything in order but not giving me the option.

22nd was a air LANDING division, not an air assault division. It was trained to follow up the paratroopers (you get those in the fall). 

The 22. Luftlande-Division was designed and organized to, as Klydon stated, follow-up a successful Fallschirmjäger operation, preferably at a captured airfield. The division was glider-born. It was never used in it's intended function, and was converted to a specialized Tropical/Motorized unit, participating in various occupation duties. The 47. Infanterie-Regiment ended up in Tunisia, and surrendered there.

Brad

You can Air Transport it easily (I.E. between two airbases, not airdropped), but I can't think of too many instances where you would want to.

It's basically just a high-quality infantry division (has very good morale)

Air transport is another thing altogether, i get that. I wanted to use it in an assault role for which it would be quite useful to me. Yes, to those of you who looked it up, thanks. It was in fact an Army unit and not Luftwaffe.