So far this is my absolute favourite game for iPhone and iPod Touch. Mr Fung Fung's mini plane shooter, Mini Squadron, combies the perfect amount of skill-based game play with tons of upgrades, sweet graphics and a brillianly simple control system (using the touch-screen only), with a splash of rumble when your plane hits the ground. A perfect game for the device and super highly recommended!!
http://minisquadron.blogspot.com/
If you want some more immediate WEB-BASED dog-fighting flight action, check this lot out instead:
http://www.thegameslist.com/games/tag/dogfight/games