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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: smolejv@gmx.net who wrote (34115)	5/21/2003 3:39:15 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

Latest traffic figures show that train lovers are returning to the autobahn or opting for the swelling number of low-cost airlines. Deutsche Bahn lost 10 per cent of its passengers in the first quarter of 2003, with revenue from long-haul journeys down 14 per cent. Time to privatize the Deutsche Bahn, DJ! 6billion from the money the German government sucked through spectum auction went into Deutsche Bahn!!! Deutsche Bahn skidding off the rails By Uta Harnischfeger Published: May 20 2003 18:47 \| Last Updated: May 20 2003 18:47 As if a looming recession and almost 5m jobless were not enough, the cherished symbol of Germany's once-lauded infrastructure, Deutsche Bahn, is under threat. The state-owned railway operator has emerged as the nation's most unpopular company, according to a recent survey. This follows the launch last year of an unpopular pricing system and technical flaws on the high-speed link between Frankfurt and Cologne which have caused growing nationwide delays. Latest traffic figures show that train lovers are returning to the autobahn or opting for the swelling number of low-cost airlines. Deutsche Bahn lost 10 per cent of its passengers in the first quarter of 2003, with revenue from long-haul journeys down 14 per cent. The company is expected on Wednesday to reveal a €130m ($152m) loss for its passenger business in the first quarter, and is also expected to reiterate its sombre forecast of a €220m full-year loss. Although this compares favourably with the €500m loss in 2002, the improvement may not be enough to resuscitate an initial public offering once pencilled in for 2005. Already there are growing signs that Hartmut Mehdorn, chief executive, will have to postpone his ambitious listing plans. Behind closed doors, politicians expect the government, burnt after its disastrous privatisation experience with Deutsche Telekom, to delay any listing until early 2006. "People are voting with their feet against the new pricing system, it [the Deutsche Bahn] really has people's blood boiling," says Hartmut Buyken at Pro Bahn, a group representing train customers. While Deutsche Bahn blames the weather, the economic malaise and growing competition from low-cost carriers, consumer advocates and politicians are crying foul over the complicated price system and growing delays. The new price system punishes late bookers, no shows and those who want to buy tickets on board, outraging customers who love the train's flexibility. Old patterns of going to the station, buying a ticket and boarding the next train are becoming impossible. "I never really came to grips with the new pricing system myself," says a conductor working on the Frankfurt-Wiesbaden service. She says she has grown tired of screaming matches with upset passengers. Instead of preparing to ring the bells on the Frankfurt stock exchange, Deutsche Bahn has started some serious soul-searching. Heads have started to roll. Following yesterday's supervisory board meeting, Deutsche Bahn said it had dismissed Christoph Franz, the board member in charge of passenger traffic, and Hans-Gustav Koch, head of marketing. Both were instrumental in launching the price system. Meanwhile, the board extended Mr Mehdorn's contract until 2008 - he has held the post since 2000. Although some critics have called for his dismissal, he is a close friend of chancellor Gerhard Schröder and still enjoys the government's firm backing. Even Mr Mehdorn's worst critics give him credit for what is considered one of the nation's toughest jobs. Besides inheriting 38,000km of sub-standard train tracks partially neglected under Communist rule, Mr Mehdorn faces dwindling government subsidies, growing competition from cheaper and more flexible train operators and unions unwilling to give up decade-old perks as state employees. In a first sign that the widespread criticism is bearing fruit, Mr Mehdorn said yesterday he would examine "certain elements of the new pricing system". The U-turn comes as a surprise after the operator insisted for months that it would only be a matter of time until customers "understand and subsequently accept" the new pricing system. Meanwhile, other sore points demand attention. Technological problems at its new showcase ICE3 tilting train have become satirised. Heavily advertised under the slogan "Deutsche Bahn gives you an hour" - the new link takes an hour off the Frankfurt-Cologne journey - critics joke that "Deutsche Bahn steals a day from you".