Anticipated Changes at the Helm of Deutsche Bahn's Leadership - Anticipated Role for the Fresh Leader of German Railways
Deutsche Bahn, Germany's national railway company, is gearing up for a significant change at the top, with the impending departure of CEO Richard Lutz. Potential successors include Evelyn Palla, current CEO of DB Regio, and Michael Peter, CEO of Siemens Mobility.
The new CEO will inherit a railway system facing immense problems, including chronic unpunctuality, a dilapidated rail network, and financial losses. Deutsche Bahn cites dilapidated, heavily loaded tracks as the main reason for unpunctual trains and plans to renovate around 40 particularly heavily used tracks by 2036.
Punctuality is a constant theme at Deutsche Bahn, with less than two-thirds of stops being made on time in long-distance traffic. In 2025, long-distance train punctuality hit a historic low of 62.5%. Financially, Deutsche Bahn recorded a substantial loss of €1.8 billion in 2024 and a €760 million loss in the first half of 2025. The incoming CEO must address these issues to reverse these losses.
Labor negotiations also pose a challenge in this context, as Deutsche Bahn operates in a highly unionized environment. Negotiations on working conditions, wages, and operational changes can affect service continuity and costs. The collective agreement with the GDL expires at the turn of the year, and the next round of wage negotiations is coming up.
The German transport minister has emphasized the need for a comprehensive new strategy before appointing a successor, focusing on making Deutsche Bahn “faster, leaner, more effective, and more economical.” The new CEO will therefore need to oversee a turnaround involving improved infrastructure investment, boosting punctuality, stabilizing finances, and managing complex labor relations.
However, the road ahead is not without obstacles. If the entire long-distance traffic comes to a standstill just a few weeks after the change at the top, it won't cast a good light on the new CEO - and certainly won't contribute to customer satisfaction. The longer the wage round lasts, the more burdensome it could be for the start of the new rail CEO.
Deutsche Bahn has received significantly more money recently, but outgoing CEO Lutz warned that it would not be enough to make the railway future-proof. The focus is mainly on renovating the existing network, with no money for new and expansion projects. This renovation will involve months-long full closures for comprehensive modernization.
Some transport experts have criticized this concept, especially due to the full closures, but the approach is generally accepted in the industry. Federal Transport Minister Patrick Schnieder wants to present a new Bahn strategy on 22 September, with a focus on customer satisfaction.
[1] Source: Deutsche Welle [2] Source: Handelsblatt [5] Source: Deutsche Bahn Press Release
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