XL’s Airways businesses in Germany and France continue to operate after being taken over by Icelandic investment bank Straumur on the day XL’s UK business went into administration with 1,700 job losses.

Straumur was the principal investor in XL Leisure Group following a management buy-out in late 2006.

XL Airways Germany has a fleet of seven aircraft and carried 200,000 passengers last year. XL Airways France operates five aircraft.

Both carriers have independent management teams and insist they are profitable and financially viable.

The German carrier’s chief executive Martin Greiffenhagen said: “Our operations will not be disrupted in any way. XL Airways Germany will continue to be an independent airline.”

XL Leisure’s UK administrator Kroll confirmed: “Straumur assumed ownership in France in Germany upon administration.”