The new Eurowings will open its first base outside Germany in Vienna, it has been announced.
The carrier, Lufthansa's new low-cost long-haul division (see news, December 3), will station two A320 aircraft at the base. Both will be staffed by Austrian Airlines pilots and cabin crew.
The base is scheduled to open in the autumn; no routes have been announced yet.
Lufthansa said in a statement said: "This partnership is possible as a result of Austrian's new collective agreement, which was entered into in December and offers additional prospects to 900 pilots and 2,300 flight attendants.
"The agreement also means that employees are making an important contribution to the future viability and competitiveness of Austrian Airlines."
The first A320 in the new Eurowings livery made its maiden flight from Hamburg to Prague on February 1.
Eurowings will be based in Cologne and begin long-haul operations towards the end of this year with a fleet of three A330-200 twin jets configured for 310 passengers. In a few years, the plan is to increase fleet size to seven A330-200s.
Jaan Albrecht, CEO of Austrian Airlines, said: "I am delighted that Vienna will be the first base for the new Eurowings outside Germany.
"It means that we will be able to further strengthen the base after the restructuring phase, and the new flights for price-conscious customers will complement our existing range perfectly."
Oliver Wagner, manager of the Wings project at Lufthansa and managing director of Germanwings, added: "With the new Eurowings, we are ramping up our offensive in Vienna as well and taking on our low-cost competitors."