Railway boss Palla warns of unbridled competition in German long-distance transport

Italo's route plans from 2028

Specifically, Italo plans to serve the Munich-Frankfurt-Cologne-Dortmund route hourly. In addition, the Munich-Berlin-Hamburg connection is to be offered every two hours. To this end, the Italian company intends to invest extensively in trains.

Currently, Deutsche Bahn holds a market share of around 95 percent in long-distance rail transport. Competitors are hardly represented at this level. With Italo's market entry, this structure could change noticeably.

Market structure and contractual framework

Italo wishes for long-term contractual commitments, so-called framework agreements, for its involvement in Germany. However, such contracts have not existed in this country since 2017. This means the company lacks an important basis for planning.

At the same time, Italo wants a certain degree of certainty that it will be allowed to serve lucrative routes. These routes – meaning track sections at a specific time – are reallocated annually by the railway subsidiary InfraGo under the supervision of the Federal Network Agency. Longer commitments are not currently foreseen.

Concern for rural areas

Palla also expressed concern that a new provider might only operate on a few routes, while connections in rural areas are lost. 'One must be mindful that a new provider does not operate on a few routes while connections are lost in rural areas,' said the railway boss.

At the same time, she warned against a concentration of benefits in major cities. 'We must be mindful that these benefits truly reach all people in Germany and not just a select few.' Specifically, she referred to 'a select few in the metropolises who already have a very good mobility offering today.'

Deutsche Bahn has repeatedly called for a reform of route allocation and more long-term planning security in the past. With the planned launch of Italo in 2028, the debate gains additional significance. The news was broadcast on Deutschlandfunk on 02.06.2026.