The Philippine Aerospace Development Corporation was created on 5 September 1973 by virtue of Presidential Decree (PD) 286, as restructured and amended by P.D. 696, for purposes of undertaking all manner of activity, business or development projects to establish a reliable aviation and aerospace industry.

Its mandate includes:

• Design, assembly, manufacture and sale of all forms of aircraft and aviation /aerospace devices, equipment or contraptions, studies or researches for innovations and improvements there upon.
• Development of local capabilities in maintenance, repair, overhaul (MRO), and modification of aerospace and associated flight and ground equipment and components thereof in order to provide technical services and overhaul support to: government agencies owning aerospace equipment, the Philippine Air Force / foreign air forces , the national airline / foreign airline companies, and to the aviation industry in general.
• Operation and provision of air transport services, whether for cargo or passengers on a scheduled or charter basis, on domestic and/or international scale