Lufthansa Cargo has established a company to handle its own airfreight and later bid for other contracts from forwarders and other airlines, the German air carrier announced in a statement.

Newly-created Handling Counts GmbH, a wholly-owned subsidiary of Lufthansa Cargo, will commence services in Frankfurt, but will then extend operations throughout Germany, said Lufthansa.

"We have founded this company in consultation with our collective bargaining partners - and we will be competitive in costs and efficiency," said Lufthansa Cargo board member Karl-Heinz Kopfle.

With a workforce of 100 initially, Handling Counts will first provide services for Lufthansa Cargo AG, while preparing to bid for other handling work offered by forwarders and other airlines at Frankfurt Airport, Europe's biggest air cargo hub.

Handling Counts managing director Christian Haug said: "Our objective is to rank among the top three warehouse logistics services in Frankfurt. Our proximity to Lufthansa Cargo will allow us to co-ordinate our processes to increase handling speed and reduce costs."

The new company will for the time being be based on the Lufthansa Cargo complex at Frankfurt's CargoCity North, but plans call for a move to CargoCity South in the mid-term.