EasyJet, which employs 4,000 staff, said the move would not affect United Kingdom jobs - its 1,000 employees in Britain would continue to be based in Luton and its 11 other bases across the country. The move is part of the budget carrier's plan to continue flying intra-European routes after the United Kingdom leaves the European Union.
Low-priced carrier easyJet is planning to establish a new company in Austria as it seeks to protect its business from the impact of Brexit.
Aviation consultant John Strickland said: "With the conclusion of the AOC process in Austria, easyJet will secure its rights to operate intra-EU flights in a post-Brexit world".
The company said the application process was "well advanced" and that it hoped to receive the accreditation "in the near future".
This will allow the airline to "keep offering flights from within the European Union to all of Europe and within EU countries - irrespective of the outcome of a future aviation agreement between Britain and the EU", the company said.
The parent company - easyJet PLC - will retain its London Stock Exchange listing and its Luton headquarters. That will cost around £10 million ($13 million). The FTSE 100 group explained that it had chosen Austria because of Austro Control's "rigorous approach to safety regulation". The LCC has based 100 Airbus A320 aircraft and 4,000 employees in six European Union member states.
The establishment of EasyJet Europe will create a number of new jobs in Austria but no jobs will move from the UK. The airline has a Swiss subsidiary airline, easyJet Swiss, which has approximately 26 aircraft under the registration HB- based in Geneva and Basel-Mulhouse-Freiburg Airports that use the callsign 'TOPSWISS'.
EasyJet said it will establish several new jobs in Austria, but will not transfer any positions from the United Kingdom to Austria.
Austria welcomed the airline's decision.
"That's an honor for Austria", Austrian Transport Minister Joerg Leichtfried said in a statement.