I just did it so it's possible although it's tight fit.
Yes, after you remove air spring and detach both arms from cradle, there is just enough room to squeeze the spring in.
And yes, then you use suitable jack to slowly lift cradle and atach the shock.
Look at my Bilstein install and you'll see few pictures.

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2010 BMW M6 * Black Saphire Metallic * Full Black Merino Leather
2019 BMW X3 M40i * Alpine White * Mocha Leather