Commander-in-Chief
In 1842 Friedrich sailed to Algeria and England. In 1844 he was promoted to the rank of vice admiral and took office as Commander-in-Chief of the Imperial Austrian Navy at the age of twenty-three. His appointment came after a mutiny by Venetian junior officers led by the sons of Admiral Baron Francesco Bandiera.
As Commander-in-Chief, Friedrich introduced many modernising reforms, aiming to make his country's naval force less "Venetian" and more "Austrian". In Austria there had until the end of the eighteenth century only been limited attempts at establishing a navy of its own. When the Habsburgs received the city of Venice along with Istria and Dalmatia following the Treaty of Campo Formio in 1797, this situation was changed considerably. The Venetian naval forces and facilities were handed over to Austria and became the basis of the formation of the future Austrian Navy. Until Friedrich's term as Commander-in-Chief it was however often felt that the force officially styled the "Austrian Navy" was in practice little more than Venetian crews and ships sailing under the Austrian flag.
Friedrich had a keen private interest in the fleet, and with him the Austrian naval force gained its first influential supporter from the ranks of the Imperial Family. This was crucial as sea power was never a priority of the Austrian foreign policy and the navy itself was relatively little known or supported by the public. It was only able to draw significant public attention and funds during the three short periods of its history when it was actively supported by an imperial prince. Following Friedrich's example, the archdukes Ferdinand Maximilian (1832–1867) and Franz Ferdinand (1863–1914) would later become active campaigners for naval matters.
The Austrian Chancellor Prince Klemens von Metternich proposed that Friedrich be named Grand Master of the Sovereign Military Order of Malta, but this was rejected by Pope Gregory XVI.
Friedrich's term as Commander-in-Chief of the Imperial Austrian Navy was cut short. He died of jaundice in Venice at the age of twenty-six, only three years after taking office.
The large sailboat SMS Erzherzog Friedrich and the battleship SMS Erzherzog Friedrich (1902) were named after him.