Evelyn Palla Appointed as New CEO of Deutsche Bahn Amid Controversies

Evelyn Palla has officially been appointed as the new Chief Executive Officer of Deutsche Bahn, following a vote by the company's supervisory board. This decision comes despite prior opposition from the railway and transport union EVG, which had expressed its intention to vote against her appointment.

Palla, who previously held the position of head of regional transport, saw her contract modified to take on the new role. As a result, her confirmation required only a simple majority rather than the two-thirds majority typically needed for new appointments. Reports indicate that at least one member of the EVG voted in favor of Palla.

While the union recognizes Palla's capabilities, the dissatisfaction stems from the appointment of Dirk Rompf as the proposed head of DB InfraGo, the infrastructure division of Deutsche Bahn. This proposal has raised significant concerns within the EVG, leading to their partial rejection of Palla's election as a means to convey their disapproval of the overall personnel strategy proposed by Federal Minister of Transport Patrick Schnieder.

Rompf is a familiar figure within Deutsche Bahn, having previously served as the head of network operations under Ronald Pofalla's leadership, a period during which the company's infrastructure reportedly deteriorated due to insufficient investment. EVG's leadership has emphasized that Rompf's past performance does not inspire confidence, noting his role in enforcing severe budget cuts that adversely affected infrastructure maintenance.

Rompf's appointment to DB InfraGo is still pending, with the supervisory board meeting scheduled soon. The EVG is optimistic about blocking his candidacy, as they believe that even some representatives from the employer side may oppose him. This situation could pose a significant challenge for Minister Schnieder, who has faced criticism for introducing Rompf's name without prior consensus, creating confusion and dissatisfaction within the industry.

On the other hand, Minister Schnieder has expressed relief regarding Palla's appointment, stating that he views her as an excellent choice for leading Deutsche Bahn through its current challenges. Palla is expected to begin her new role by October 1, succeeding Richard Lutz, who led the company for nearly eight years but struggled to implement necessary changes.

Her new mandate aligns with a recently introduced federal strategy focusing on enhancing reliability, safety, and cleanliness within the railway system. Immediate initiatives include improving passenger comfort in long-distance travel by next year. The government is also committed to a long-term plan that includes comprehensive renovations of vital railway lines to modernize and improve the infrastructure by 2036.

Additionally, the punctuality goals for long-distance trains have been revised downward, aiming for at least 70% on-time performance for ICE and IC trains by the end of 2029. This is a revision from the earlier targets set by Deutsche Bahn, which Schnieder deemed unrealistic given the current performance levels.

Long-term, the government aims for punctuality rates of at least 80%, with a vision of reaching 90% in the future. Meanwhile, the goal for local services is to maintain a punctuality rate exceeding 90%, although specific timelines for these objectives have not been detailed.