Deutsche Bahn Turns to DB Regio Chief Evelyn Palla to Steer Troubled Rail Giant
Berlin, Germany – September 21, 2025 – In a move signaling a determined effort to address mounting challenges, Deutsche Bahn (DB) has tapped Evelyn Palla, the former head of DB Regio, as its new CEO. The appointment, confirmed by government and supervisory board sources, comes as the German railway system faces a severe crisis marked by persistent delays, aging infrastructure, and dwindling customer satisfaction. This is breaking news for the future of rail travel in Germany, and archyde.com is bringing you the latest.
A Crisis of Punctuality and Infrastructure
Palla steps into the role previously held by Richard Lutz, who led the company since 2017. Her arrival coincides with a particularly difficult period for DB. August saw just under 60% of long-distance trains running on time, a stark indicator of the systemic issues plaguing the network. The core problem? A crumbling infrastructure desperately in need of modernization. While recent economic figures have shown slight improvement, a substantial €760 million loss in the first half of 2025 underscores the financial strain.
The situation isn’t simply about repairs; it’s about a fundamental overhaul. DB is embarking on a series of “general renovations” – complete route closures lasting months – aimed at comprehensive repairs. Over 40 key corridors are slated for this treatment by 2036, with a promise of at least five years of uninterrupted service following each renovation. However, that promise is already facing scrutiny, with adjustments to the construction schedule on some routes.
The Agenda for Satisfied Customers: A New Strategy
Federal Transport Minister Patrick Schnieder, a key advocate for Palla’s appointment, has unveiled a new strategy for DB, titled “Agenda for Satisfied Customers on the Rail.” While details remain scarce, Schnieder emphasized the need for trains to be “on time, safe, and clean,” as well as “faster, leaner, more powerful and also more economical.” He acknowledged the “dramatic” state of affairs, highlighting the urgency of the situation. The strategy is expected to be formally presented on Monday, and will be crucial for DB’s turnaround.
Palla’s Experience and the Path Forward
Evelyn Palla brings a wealth of rail experience to the table. Born in 1973, she honed her skills at Infineon Technologies and E.ON before joining the Austrian Federal Railways (ÖBB) in 2011. Her tenure at ÖBB saw her lead regional transport and chair the supervisory board of ÖBB Postbus AG. Since 2019, she’s been a key figure at Deutsche Bahn, making her a familiar face within the organization. Her background suggests a focus on operational efficiency and customer-centric improvements.
However, Palla’s success will depend heavily on securing adequate funding from the federal government. While DB has recently received increased financial support, outgoing CEO Lutz warned that these funds are insufficient to fully address the long-term challenges. The negotiation between Transport Minister Schnieder and Finance Minister Lars Klingbeil will be pivotal in determining the extent of investment in Germany’s rail network.
Beyond the Immediate Crisis: The Future of German Rail
The appointment of Evelyn Palla isn’t just about fixing immediate problems; it’s about positioning Deutsche Bahn for the future. The planned infrastructure renovations, coupled with potential job cuts and streamlining of unprofitable divisions like DB Cargo, represent a significant restructuring effort. The success of this transformation will hinge on Palla’s ability to navigate complex political and economic landscapes, while simultaneously delivering a reliable and efficient rail service for millions of passengers. The coming months will be a critical test for both Palla and the future of rail travel in Germany. Stay tuned to archyde.com for continuing coverage of this developing story and in-depth analysis of the challenges and opportunities facing Deutsche Bahn.