The appointments of Evelyn Palla as CEO of Deutsche Bahn (DB) and Philipp Nagl as head of DB InfraGo have been hailed by former Austrian Chancellor Christian Kern as a significant validation of his past leadership strategies at Austrian Federal Railways (ÖBB). In an interview with the Süddeutsche Zeitung, Kern, whose tenure at ÖBB preceded his political career, characterized the appointments as a “maximal Auszeichnung” – a maximum distinction – recognizing the values he instilled during his time there.
Kern personally recruited Palla to ÖBB in 2011, praising her “excellent business acumen” and structured, analytical approach which he credits with bringing order to the company’s finances. He acknowledged, however, that the prospect of both Palla and Nagl leading DB would have seemed improbable given the established decision-making processes within the German rail network.
The former Chancellor’s reflections touch upon a period when he himself was considered a potential successor to former DB CEO Richard Lutz. While acknowledging that inquiries were made, Kern explicitly stated he declined the opportunity, citing concerns about the systemic challenges plaguing the organization.
Now managing director at locomotive leasing firm Ell-Group, Kern paints a stark picture of the CEO’s role at DB as akin to “Sisiphus rolling the stone uphill”. He attributes the primary obstacle to progress as the disparate and often conflicting interests of DB’s owners, powerful unions and different management factions, creating a pervasive lack of a unified strategic vision.
He further criticizes the company’s excessive complexity and what he describes as “brutal” and damaging political constraints. Kern highlights the immense financial burden imposed by ongoing construction projects and the necessary diversions, arguing that they severely impede the viability of both passenger and freight operations. He concluded with a pessimistic outlook, suggesting that even bringing back Steve Jobs would likely prove insufficient to overcome such deeply entrenched problems. The situation, he implies, is an indictment of the long-term political and managerial choices that have shaped Deutsche Bahn.