TNT Express has announced that it will sell its two airline subsidiaries, TNT Airways and Pan Air Líneas Aéreas, to ASL Aviation Group. TNT operates two BAe 146-200QTs and seven 300QTs (two more 200QTs are in storage), while Pan Air operates six 200QTs and one 300QT. The sale of both airlines is necessary in order for the planned merger of TNT Express with US-based UPS to proceed. Under European Union (EU) regulation No.1008/2008 of 24 September 2008, only airlines that are at least 50% owned and effectively controlled by one or more EU member states and/or nationals of EU member states can operate intra-EU routes without restrictions. The sale of both airlines to ASL is conditional on the proposed UPS-TNT Express merger being approved, and would become effective immediately prior to the merger’s completion. ASL would continue operating the TNT Airways and Pan Air fleets on UPS’ behalf under a service contract, and would be invited to bid for all of the combined group’s outsourced air business in Europe. ASL Aviation Group already includes several cargo airlines, including Ireland-based Air Contractors and France-based Europe Airpost. The TNT-UPS was intended to be completed by mid-2012, but has been delayed by a detailed review of the deal’s implications for competition by the European Commission.