Berlin fires Deutsche Bahn boss

The German government announced on Thursday the dismissal of Deutsche Bahn boss Richard Lutz, who has come under fire, particularly for the lack of punctuality of its trains.

"We have agreed to prematurely terminate the contract of the railway boss," announced German Transport Minister Patrick Schnieder at a surprise press conference in Berlin. He pointed to the "dramatic" situation at DB and the lack of customer satisfaction in terms of punctuality and profitability.

The punctuality rate of long-distance trains in Germany has been falling for years. Last year, it reached only 62.5%, compared to 79% in 2016.

Richard Lutz, 61, who has been at the helm of DB since 2017, will remain in office until a successor is found. This is an early departure: his contract was due to run until 2027.

The Conservative minister had warned that he would make a decision on the future of the state-owned company's management before the end of the summer, as part of an overhaul of the national rail strategy.

The details of a DB "reform" will be revealed on September 22, the minister announced at Thursday's press conference. "If everything goes perfectly, we will be able to present the strategy and perhaps also the succession in a relatively short time," he added. Patrick Schnieder had expressed "dissatisfaction" with the punctuality of German trains, denounced by users and regularly mocked on social media.

The Deutsche Bahn user association has given a cold shoulder to the announcement of Richard Lutz's departure. "The situation of the railways will not change by changing the leadership, but only by improving railway policy in Germany and adequately funding the railways," Karl-Peter Naumann, honorary leader of Pro-Bahn, told AFP. "All previous transport ministers have more or less failed and have significantly contributed to the current situation of the railways," he added.

The company, which is 100% owned by the federal government, is suffering from its dilapidated infrastructure and a debt that it reduced this summer thanks to the sale of its profitable logistics subsidiary Schenker.

The group will be able to count on €107 billion in state aid until the end of the legislative term in 2029, including more than €20 billion this year. The majority of this comes from the special €500 billion infrastructure fund approved in March for the government.

But an additional 17 billion euros would be needed by 2029, Richard Lutz argued, to carry out digitalization and the modernization of existing infrastructure without delay.