The chief executive of Germany's rail network, Deutsche Bahn (DB), was dismissed on Thursday with the state-owned railway mired in economic, infrastructure and punctuality crises.

Richard Lutz, who has headed DB since 2017 after seven years as the company's finance director, had a contract until 2027 – but this has been cut short.

"I thank Dr. Lutz for his efforts in difficult times," said German Transport Minister Patrick Schnieder (CDU), while a DB spokesperson confirmed that Lutz would continue in his role on a caretaker basis until a successor is appointed.

"I am sure that he will continue to do all he can for the railway in his remaining weeks," said Schnieder.

Deutsche Bahn: German inefficiency 

Deutsche Bahn, a joint-stock company owned 100% by the German state, was once famed for its efficiency and reliability, but its reputation has been shattered in recent years.

Under Lutz, the punctuality of German long-distance trains has plummeted from 78.5% in 2017 to just 62.5% last year, meaning that over one third of trains arrived late, costing DB almost €200 million ($232.8m) in compensation. The company considers trains that reach a station more than 6 minutes after their scheduled arrival to be late.

Following years of under-investment and despite increasing ticket prices, DB continues to make annual losses.

Germany's GDL train drivers' union welcomed Lutz's dismissal as "a necessary consequence of years of mismanagement that has led Deutsche Bahn deeper and deeper into the current crisis."

"This decision was correct and unavoidable," GDL chairman Mario Reiss said. 

Lutz's days have been numbered since Germany's new government took office under Chancellor Friedrich Merz in May, pledging to restructure DB's management and modernize the country's creaking transport infrastructure.

That reshuffle has now started, with Schnieder announcing the presentation of a new strategy on September 22.

"Ideally, we'll be able to present a new chief executive, too," he said. "Whether in terms of customer satisfaction, punctuality or economic performance, the situation on the railways is dramatic."

Pressure now on German government 

For Dirk Flege, head of Germany's leading railway lobby group Allianz pro Schiene ("pro-railway alliance"), the dismissal of Lutz now puts the pressure on Schnieder.

"The pressure on the transport minister has now grown enormously," he said. "He now has just a few weeks to present a long-overdue government strategy for the railways and find a suitable new chief executive."

Schnieder said the basic outline of the government's new concept was already agreed upon but that he would take his time to identify a suitable DB successor, promising: "Thoroughness and diligence before speed."

In the meantime, elements of Lutz's renovation plans are underway, with plans in place for 40 key connections around the country.

Currently, the route between Germany's two biggest cities, Berlin and Hamburg, is closed as it undergoes repair work set to last several months.

Editor: Sean Sinico

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