ÖBB - Austrian Railways
ÖBB (Österreichische Bundesbahnen) is Austria's national railway company, operating passenger and freight services domestically and internationally. As a state-owned holding company, ÖBB manages rail infrastructure, operates trains, and provides related transport services across Central Europe.
History and Structure
ÖBB was established in 1923 following the dissolution of the Austro-Hungarian Empire's imperial railways. The modern corporate structure emerged in 2004 when Austrian railways were reorganized into ÖBB-Holding AG, splitting operations into distinct business units.
The company comprises several key divisions: ÖBB-Personenverkehr (passenger services), Rail Cargo Group (freight), ÖBB-Infrastruktur (infrastructure management), and ÖBB-Postbus (bus services). This structure aligns with EU requirements for separating infrastructure management from train operations.
Operations and Services
ÖBB operates approximately 5,000 trains daily, serving 465 million passengers annually. The Railjet high-speed service connects major Austrian cities with neighboring countries at speeds up to 230 km/h.
The company's freight division, Rail Cargo Group, ranks among Europe's top five rail freight operators. It handles 140 million tonnes annually, focusing on transalpine corridors and connections to European ports. The division operates in 18 European countries through subsidiaries and partnerships.
Nightjet - European Night Train Network
ÖBB has become Europe's leading night train operator through its Nightjet brand, operating 27 lines across the continent. Following Deutsche Bahn's 2016 withdrawal from night services, ÖBB acquired much of DB's sleeping car fleet and expanded routes systematically.
The current network connects major cities including Vienna, Paris, Amsterdam, Brussels, Hamburg, and Rome. Recent expansions include Paris-Vienna (December 2021) and the seasonal Amsterdam-Innsbruck ski service. By 2025, ÖBB plans to launch Berlin-Paris and extend services to Barcelona.
ÖBB has ordered 33 next-generation Nightjet trains from Siemens for €700 million, featuring mini-cabins for solo travelers, improved accessibility, and higher capacity. These new trains, entering service from 2023, offer three comfort levels: seated coaches, couchettes, and sleeping cars with private compartments.
Despite growing popularity, Nightjet faces persistent criticism over pricing. Sleeping car compartments often cost €200-400 per person, exceeding budget airline fares on comparable routes. Dynamic pricing introduced in 2023 has pushed peak travel prices higher, while last-minute bookings can reach €500 for premium routes. Consumer organizations and MEPs have questioned whether premium pricing undermines the EU's modal shift objectives, particularly when night trains receive public subsidies.
The Nightjet expansion nonetheless aligns with EU climate goals and responds to demand for sustainable long-distance travel. Partnerships with SNCF, SBB, Deutsche Bahn, and Trenitalia enable coordinated scheduling and ticket integration across national borders. ÖBB argues that high occupancy rates justify current pricing, though accessibility for price-sensitive travelers remains a policy challenge.
Infrastructure and Modernization
ÖBB-Infrastruktur maintains 5,000 kilometers of track, including critical Alpine routes through the Brenner, Tauern, and Semmering passes. The network is 72% electrified, primarily using the 15 kV 16.7 Hz AC system standard in German-speaking countries.
Major infrastructure projects include participation in the Brenner Base Tunnel (completion 2032) and the Koralm Railway (partial opening 2025). These projects strengthen Austria's role in the Trans-European Transport Network (TEN-T), particularly the Scandinavian-Mediterranean and Baltic-Adriatic corridors.
EU Integration and Climate Strategy
ÖBB positions itself as Europe's climate protection railway, operating on 100% renewable electricity since 2018. The company's night train leadership directly supports EU modal shift objectives under the European Green Deal.
Through partnerships with European railways, ÖBB participates in cross-border ticketing initiatives and the development of high-speed connections. The company actively implements EU railway packages, including ERTMS deployment on major corridors and preparation for market liberalization.
Financial Performance
As a state-owned entity, ÖBB receives substantial public funding for infrastructure and public service obligations. Annual revenues exceed €7 billion, with approximately 60% from passenger services and 30% from freight operations. The Austrian state provides €3-4 billion annually for infrastructure investment and regional service contracts.
The company employs 42,000 people and maintains a strong credit rating, enabling infrastructure financing through European Investment Bank loans and green bonds.