In 40 years as a landscape architect, I've never seen an air spade used that way. I think this is because air spades are expensive equipment and not available for most tree plantings. In my practice I always specified that root flares must be exposed and circling roots cut, usually with hand tools. But the air spade does make quick work of it. BTW, air spades blow soil and dust everywhere and are much messier than hand work or water.
Air spades are mostly used for basal excavation around existing trees to diagnose problems, to correct soil compaction, and when trenching is necessary through the root zone to reduce damage to roots.