Air is the only way to go IMHO. While both systems will allow you to adjust the height of the bus, they are totally different in operation. In an air ride system the bags control both ride height (and kneeling when stopped) and are the springs in the system. In a hydrauli system you will still be relying on another spring for ride quality while the hydraulics simply control ride height. In most cases this means shorter, rougher riding springs in order to keep the heigh reasonable. There is a reason why coach builders use air ride systems instead of hydraulics for "kneeling." Of course if you're going for that So-Cal look, a bus bouncing up and down 2 feet at the stopsign would be cool and only possible with hydraulics
**Also...air systems are much less complicated and I promise you want a leak to be compressed air, not hydraulic fluid under pressure should one arise