GERMAN transport minister, Patrick Schnieder, announced on September 22 that Evelyn Palla has been appointed as the new CEO of German Rail (DB). It follows the resignation last month of current CEO, Dr Richard Lutz, following a sustained period of criticism over DB’s poor financial and operational performance. Palla is expected to take over on October 1.
Palla, a 52-year-old Italian national, joined DB in 2019 as chief financial officer of the company’s long-distance passenger subsidiary and was appointed DB board member for regional transport in 2022. She began her career at Infineon Technologies, and progressed through the ranks at E.on, working in Munich, Cologne and Milan, before joining Austrian Federal Railways (ÖBB) in 2011.
In 2015, she was appointed executive board member for regional transport at ÖBB’s passenger subsidiary and chairwoman of the supervisory board of ÖBB’s postal division. Last year Palla qualified as a driver, making her the only DB board member to have this skill.
ÖBB CEO Andreas Matthä comments: "Due to her eight years of work at ÖBB, I know Evelyn Palla well. She is a proven railway expert, has clear ideas and knows how to get them off the ground as a manager. At ÖBB, she has made a significant contribution to the company's positive financial results.”
At a press conference on September 22, launching the transport ministry’s long-awaited report into German rail reform, Schnieder and Palla announced that a new punctuality target for DB long distance services has been set for 2029, with 70% of services due to arrive on time. A medium-term target of 80% in the immediate future and a long-term goal of 90% have also been set. Last year DB recorded an all-time low for long distance punctuality of just 62.5% and paid out €200m in compensation for delays. Punctuality has remained at a similar level in the first half of this year.
Reaction
Palla’s appointment has been broadly welcomed by the rail industry. In a joint statement, the German Rail Freight Association (Die Güterbahnen) and Mofair, which represents private operators, say:
“Palla knows the need for restructuring and the image problems of DB. She also knows from her work at ÖBB how group-owned infrastructure can function without needing to be overly dominant."
