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will disbanding my air squadrons allow for more ground units as Axis?Manual says disbanded air is permanetly gone,is there no LW field divisions that will produce with this method?

will disbanding my air squadrons allow for more ground units as Axis

Yes and no. If you have less air units you have less need of airbase support troops. The excess will work their way back into your manpower pool giving you more replacements. The Luftwaffe ground units are already well represented in the game. I would probably send air units you feel you don't need to the EF. The increase in CV might let you pull a few infantry divisions west without losing much in total EF CV.

No option in EF box.Transfer by air transfer mode?

Yes, transfer to any city/town (does not have to have a base) near the east edge of the map.

I think you just try to move them to a Soviet controlled hex (IIRC, Pavel also added a way in the CR screen to transfer units).

I moved several air groups east and east front cv did not increase at all