American Marconi Wireless News - Germany sacks rail chief with train network in crisis

Once widely admired for its punctuality and efficiency, Germany's rail service has worsened dramatically in recent years owing to what critics say is chronic underinvestment.

Passengers now often complain of long delays and cancelled trains in Europe's biggest economy -- last year, almost 40 percent of long-distance services were late.

Richard Lutz, who took the helm of the publicly owned institution in 2017, will leave his chief executive post two years before the end of his contract, the government confirmed.

"The situation at Deutsche Bahn is dramatic, if you look at customer satisfaction, punctuality figures or profitability," Transport Minister Patrick Schnieder told a press conference to announce Lutz's departure.

"The company must become faster, leaner, more effective and also more economical."

The 61-year-old will stay on until a successor is found, with the government saying the hiring process would start immediately.

- Funding pleas -

Karl-Peter Naumann from rail passenger association Pro-Bahn warned that changing the boss would not solve Deutsche Bahn's problems.

The situation would only change if policies improved and funding was increased, he told AFP.

"All previous transport ministers have more or less failed and have contributed greatly to the railways being in the situation they are in today," he said.

Lutz's days had seemed numbered since a new coalition under Chancellor Friedrich Merz took power in May.

Schnieder had publicly complained earlier this month about the railways' poor punctuality and suggested he was looking at personnel changes.

Workers on the railways -- Deutsche Bahn has some 220,000 employees -- had also spoken out against Lutz, with the GDL train drivers union calling in July for him to be sacked.

The transport minister also said he would present a major plan to fix the network in late September.

The government's is seeking to fix crumbling infrastructure more broadly, establishing a 500-billion-euro fund.

Deutsche Bahn has already embarked on a push to renew parts of the network but it is likely to take years to complete.

It has seen falling profits in recent years and is also saddled with more than 20 billion euros in debt.

Y.Nakamura--AMWN