FRANKFURT - THE leading German airline Lufthansa and shipping firm DHL Express, a unit of the German Deutsche Post, announced Friday a joint venture to provide air freight service between Germany and Asia.

The new company, AeroLogic, is to fly starting June 29 from Leipzig in eastern Germany to Bahrain, Singapore, Delhi, Tashkent and Hong Kong, a statement said.

AeroLogic will begin operations with four Boeing 777F cargo jets to be delivered this year and add four more in 2010 to connect with most of Asia's major cities.

The company expects traffic between Europe and Asia to grow by five per cent per year once an economic recovery is fully underway.

'The global logistics market will pick up quickly as soon as the first signs of an economic rebound appear,' the statement quoted Deutsche Post boss Frank Appel as saying.

Cargo flights were also planned later between Leipzig and North America, the statement added. -- AFP