Italian private rail operator Nuovo Trasporto Viaggiatori (NTV), known for its Italo brand, plans to enter the German high-speed rail market by 2028. The move faces intense opposition from the Railway and Transport Union (EVG), which warns that a focus on high-traffic routes could lead to service reductions in smaller cities, a practice often referred to as “cherry-picking” routes.
Why is the German rail union opposing Italo?
The EVG, which represents approximately 230,000 workers—most of whom are employed by Deutsche Bahn—argues that an unregulated market entry by Italo threatens the existing infrastructure of cross-subsidization. According to the union, profits from high-traffic corridors currently cover the losses incurred on less profitable routes that serve smaller towns. By focusing exclusively on lucrative connections, the union fears private competitors will force Deutsche Bahn to abandon secondary lines to remain competitive.
EVG Chairman Martin Burkert stated that while competition is not inherently negative, it must operate under fair rules. Burkert claims that Italo is seeking special regulations, suggesting that the ultimate beneficiaries of an unregulated entry will be the company’s investors rather than the rail passengers.
The EVG launched an advertising campaign in Aachen, Augsburg, Bamberg, Magdeburg, Münster, and Osnabrück. These cities were specifically chosen because union officials identify them as being at high risk of service cuts if Deutsche Bahn loses revenue on major lines.
What is the proposed expansion strategy?
NTV intends to compete directly on primary German corridors. According to company representatives, the planned routes include Munich – Frankfurt – Dortmund and Munich – Berlin – Hamburg. To support these operations, the Italian operator plans to order a fleet of thirty high-speed trains from Siemens, provided they secure guaranteed access to the necessary track capacity.
Gianbattista La Rocca, head of Italo, has promised lower ticket prices and improved service standards compared to the current offerings from Deutsche Bahn. However, the timing of this entry coincides with a period where the punctuality of German long-distance trains hit a historic low, providing a strategic opening for a new market entrant.
How does Deutsche Bahn respond to new competition?
The leadership at Deutsche Bahn shares similar concerns with the union regarding the structure of market entry. Evelyn Palla, a director at Deutsche Bahn, has called for a balanced allocation of routes. She argues that access to high-demand tracks should be conditional on a provider’s commitment to also serve smaller, less profitable cities.
Palla warned that without such conditions, the market risks “uncontrolled competition,” which she described as potentially harmful to the majority of travelers. This debate centers on the concept of “cherry-picking,” where a private operator selects only the most profitable segments of a network, leaving the public operator to manage the financial burden of the remaining, less viable infrastructure.
The upcoming decisions on how capacity is partitioned between incumbents and new entrants will determine the feasibility of Italo’s 2028 timeline.
Frequently Asked Questions
When does Italo plan to begin operations in Germany?
NTV (Italo) has stated its intention to begin operations on selected German routes in 2028.
Which routes is Italo targeting?
The company has identified the Munich – Frankfurt – Dortmund and Munich – Berlin – Hamburg corridors as its primary targets for high-speed rail service.
Why are German unions concerned about competition?
The EVG union fears that private competitors will ignore less profitable routes, forcing Deutsche Bahn to cut services in smaller cities that are currently supported by profits from major, high-traffic lines.
Are German high-speed trains subsidized by the state?
No. In Germany, high-speed rail services operate entirely outside of state or regional government contracts, meaning they rely on their own commercial viability.
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