Greetings gshanson,
It is not clear from your post what you are trying to accomplish using a Bluetooth connection between your iPhone and your MacBook Air. If you want to use the Mac's Continuity features it is not necessary to pair the devices. See this article - Use Continuity to connect your iPhone, iPad, iPod touch, and Mac.
If you want to use a Bluetooth connection to allow your MacBook Air to use the iPhone's Personal Hotspot, use this article - Get help with Personal Hotspot in iOS.
If you want to sync your iPhone with the MacBook Air, this needs to be done either using Wi-Fi or a USB connection. See this article - Sync your iPhone, iPad, and iPod touch with iTunes.
Thanks for using Apple Support Communities.
Be well.