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Outlook for 2020

In June 2020 Abellio will start the third phase of operations in Stuttgarter Netz (STN) and the second phase of operations in Rhein-Ruhr-Express (RRX) and will continue to work on cross border connections like Arnhem-Düsseldorf. Our focus will be on reaching a satisfactory agreement with our clients (PTAs) on compensation for the additional staff costs as a result of the tight labour market and the new collective tariff agreements as well as a fair penalty regime for infrastructure related underperformance following disruptions that are not influenceably by the train operating company. Such agreements are a condition for the profitability over the life of the contracts. Without such agreements it will be difficult to realise a reasonable profitable result in the German rail market. Based on the current conversations with PTAs we expect to achieve a satisfactory outcome. As a result from the new collective labour agreements and the mobilisation of contracts in 2020 an increase in personnel is expected compared to 2019.

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