Italo's €3.6B German Rail Expansion Promises 40% Cheaper Fares by 2028

Italo's €3.6B German Rail Expansion Promises 40% Cheaper Fares by 2028

Steven Fox
Steven Fox•
• 2 Min.
Blue line on a map of Italy indicating a circular train route from Rome, passing through various labeled cities and towns.

Italian High-Speed Rail Operator Italo to Launch Services in Germany from 2028, Challenging Deutsche Bahn

Italo's €3.6B German Rail Expansion Promises 40% Cheaper Fares by 2028

Italian high-speed train operator Italo plans to begin operations on German tracks in April 2028, introducing blue trains to compete with Deutsche Bahn's ICE fleet. Chairman Luca Cordero di Montezemolo announced the move in Wednesday's edition of the Frankfurter Allgemeine Zeitung. The company initially intends to deploy 30 new Siemens Velaro trains—the same model used as the basis for ICE trains—with Montezemolo, the former long-time Ferrari chief, outlining plans for 56 daily connections. Services are set to run hourly between Munich, Cologne, and Dortmund, and every two hours between Munich, Berlin, and Hamburg.

According to Montezemolo, Italo will invest €3.6 billion in the project, including a 30-year maintenance contract with Siemens. Operations in Germany will be managed through Atrium SE, a newly established subsidiary, with the goal of creating an independent German-led company. The executive also pledged 2,500 new jobs in service and operations, along with the involvement of over 5,000 industrial workers in train production, primarily in North Rhine-Westphalia.

However, Montezemolo stressed that the multibillion-euro plan hinges on long-term allocation of network capacity, with Italo requiring confirmation by the end of May. Hiring of German staff is slated to begin in June. Expressing confidence in the benefits of competition, he noted that Italo's entry into the Italian market had already driven average ticket prices down by 40%, suggesting similar outcomes could be achieved in Germany through improved service and lower fares.