Mumbai, May 4: Royal Airways will raise up to $90 million by way of foreign currency convertible bonds to buy additional aircraft.

The Royal Airways board met today to approve the borrowing plan.

Royal Airways has recently received regulatory approval to change its name to SpiceJet. The company proposes to launch a budget airline called SpiceJet soon.

The airline has two planes so far and plans to re-launch its operations in the country. Royal Airways along with Jet Airways are the only two airline companies to have their shares listed on the local stock exchanges.

Jet Airways is the leader in the domestic airspace cornering the largest chunk of the marketshare.

The airline operators are betting that air travel in India will grow exponentially with more and more first-class rail travellers preferring to fly in view of the cheap fares that compare well with first class rail fares.

Air-India is expected to list its shares in the near future once the cabinet gives its approval.

The board had recently approved its plan to go public. The initial public offering will give the company funds to finance its ambitious aircraft renewal plan.

Royal Airways along with Vijay Mallya's Kingfisher Airlines are the latest to enter the domestic civil aviation sector in the country.

The two companies have acquired two aircrafts to start operations and are expected to add more to their fleet every month.

The government yesterday revealed that it has received applications for the launch of three airlines. Paramount Airways Private Ltd, Visaa Airways Private Ltd and Magic Air Private Ltd.

The civil aviation minister has not indicated a firm date for the commencement of operation by these carriers, saying it would depend on their compliance with the civil aviation requirements set by the government.