CEO Richard Lutz wants to present restructuring plan

by times news cr

2024-09-09 09:58:36

Deutsche Bahn boss Lutz wants to make the state-owned company “profitable and punctual again”. After pressure from Transport Minister Wissing, he now wants to present a concept.

The supervisory board of Deutsche Bahn is to discuss a new restructuring program presented by company boss Richard Lutz on September 18. This is reported by the “Süddeutsche Zeitung”.

The concept, which has already been sent out internally, is entitled “S3” because it is intended to have an impact in three years and to address three areas of improvement – infrastructure, operations and profitability. The concept relies, among other things, on more commuter connections or so-called sprinters, the newspaper reported in advance on Sunday. In addition, the area network is to be redesigned and less investment in factories is to be made.

In addition, the head of the railway apparently wants to reduce the number of trains at overloaded junctions in order to ensure more punctuality. This is reported by the “Tagesspiegel” newspaper, citing the strategy paper. This affects cities with overcrowded rail networks such as Cologne, Hamburg or Freiburg. However, according to the newspaper, this would require changes to the railway regulations, which currently stipulate that the tracks are used as fully as possible.

The railway is under massive criticism for its lack of punctuality, among other things. About a week ago, Federal Transport Minister Volker Wissing (FDP) demanded that the state-owned company’s management draw up a restructuring plan with precise goals “as quickly as possible”. At the same time, he rejected the cancellation of less profitable long-distance routes and advocated savings primarily in the area of ​​the company’s administrative staff.

According to the “Süddeutsche Zeitung”, Lutz’s restructuring plan sets out how the railway is to become “profitable and punctual again” by 2027. He identifies infrastructure deficiencies as the “main reason for the failure to meet targets”. At 34.3 billion euros, personnel costs this year are also significantly higher than the originally estimated amount of 28 billion.

According to the report, the railway boss’s plans also include keeping fewer ICE trains in reserve and reducing the turnaround times of trains. According to the “Süddeutsche Zeitung”, the measures are controversial internally. “Some supervisory board members” of the company have already voiced criticism. They complained that the program was “old wine in new bottles”.

You may also like

Leave a Comment