Deutsche Bahn’s once-admired service has descended into chaos. Whether decades of poor investment or the company’s unusual structure is to blame, it’s a huge headache for a coalition trying to meet climate goals
The DB was supposed to be privatized in 1994, that failed. So now we have a stock based company (AG), lead like a profit oriented company, but owned 100% by the state.
Since 1994, the entire company was (due to incompentence and wrong incentives) driven on attrition. The best example: if a bridge needs repair, that’s DB’s expense, but if the bridge has to be rebuilt, the state pays. So what would any smart CEO do? Stop maintenance, wait for the bridge to fail and then have it repaired on the state’s bill.
Oh no, that actually started way earlier!
The DB was supposed to be privatized in 1994, that failed. So now we have a stock based company (AG), lead like a profit oriented company, but owned 100% by the state.
Since 1994, the entire company was (due to incompentence and wrong incentives) driven on attrition. The best example: if a bridge needs repair, that’s DB’s expense, but if the bridge has to be rebuilt, the state pays. So what would any smart CEO do? Stop maintenance, wait for the bridge to fail and then have it repaired on the state’s bill.