From: Seoul, Korea
Yes, the AI cheats. If it didn't, you'd have even less of a challenge. Anyway, I personally have no issue with this kind of thing.
Another thing: CAP tends to be pretty good for both sides in an AI fight--the AI will give you the opportunity to create a lot of aces. Also, as an AFB playing against the AI, I find it's better to shore bombard than run heavies against a well-capped base.
Beer, because barley makes lousy bread.