- Establish and prescribe rules, regulations, and procedures for the regulation, promotion, and development of the economic aspect of air transportation;
- In the exercise of its regulatory powers, it is authorized to issue Certificates of Public Convenience and Necessity (CPCN) to domestic carriers, Foreign Air Carrier's Permit (FACP) to foreign carriers, and Letters of Authority to airfreight forwarders, general sales agents, cargo sales agents who are fit, willing, and able to perform services as required by public convenience and necessity. CAB likewise performs quasi-judicial functions.
- Establish and prescribe the corresponding rules and regulations in the enforcement and monitoring of compliance of the laws governing stakeholders engaged in air commerce;
- Determine, fix and/or prescribe charges and/or rates pertinent to the services in connection with air commerce;
- Acts as vice-chairman of the Philippine Air Panel in the negotiations and consultations of air agreements with foreign governments for the promotion, establishment, or development of foreign air transportation
- Participates in bilateral, regional, and international fora relating to air transportation matters.
Administrative Division: Provides administrative service to Board personnel, executing office policies and implementing Civil Service rules and regulations.
Legal Division: Provides the Board with legal service & enforce RA 776, as amended, as well as the rules & regulations issued thereunder.
Financial and Management Division: Prepares the CAB’s budget estimates and requirements for submission to DBM and Congress; Execute and allocate funds on the basis of priorities and guidelines of the CAB; Manages the overall financial requirements of the CAB and recommends financial measures for final decision to top management; Reviews and monitors the revenue collections and disbursement of the office and prepares and submits required accounting and financial reports to various government agencies.
Air Carrier Accounts and Audit Division: Evaluates, analyzes and prepares recommendation/approval of unopposed new/renewal of permit of off-line carrier, airfreight forwarder, general/cargo sales agent and cargo sales/breakbulk agent of airfreight forwarders; prepares recommendation on financial viability of air carriers application for FACP/CPCN; analyzes financial operating reports; perform audit, conducts inspection of applicant’s facilities, monitors submission of reports and payment of fees and other charges.
Planning and Research Division: Provides economic data & advice to the Board in relation to aviation policies; Prepares & formulates plans/ programs for the regulation/development of air transportation; Provides researched and /or generated data or statistics for the information of the public; responsible in the preparation of the CAB annual report; Handles the CAB’s system improvement and computerization programs.
Hearing Examiners Division: Conducts hearings, receives testimonial & documentary evidence; Submits recommendations on original, renewals, contentious applications/petitions for FACPs, CPCNs, and other applications with opposition.
Air Operating Rights Division: Analyzes and submits recommendation on applications/petitions for operating authorization for both domestics & international carriers, including the routes, frequencies, capacities, schedules & tariffs of said carrier.