Austrian Airlines taking on a Birmingham-Vienna route currently served by Luftansa Group budget sister carrier Eurowings.
Eurowings will continue with a twice-weekly frequency to the Austrian capital until the end of the year.
Vienna will initially be served by Austrian Airlines four times a week from January 1, 2020, rising to a daily frequency in the summer.
The airline will deploy an Embraer 195 regional jet on the route with eight seats in business class and 112 in economy.
Fares start at £89 return.
Lufthansa Group senior UK, Ireland and Iceland sales director Andreas Koester said: “We are delighted to launch the new Austrian Airlines service with a more co-ordinated flight schedule, resulting in more efficient and comfortable transfer possibilities to our long and short-haul network.
“With the new service, Lufthansa Group introduces another premium product to Midlands customers, offering lounge and fast track access at Birmingham airport and state of the art lounge and transfer services at our hub in Vienna.”