Can an open-access rail operator challenge a state-backed monopoly?

Can an open-access rail operator challenge a state-backed monopoly?
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In short: FlixTrain entered the German market in 2018 to supplement the existing bus network with rail connections. But as it expanded, it found itself in a legal battle against Deutsche Bahn, alleging that €5 billion in government state aid created an uncompetitive landscape for private competitors.

Operating as a subsidiary of Flix SE, FlixTrain utilizes an open-access model, sharing marketing and sales channels with FlixBus. Unlike Deutsche Bahn, which uses fixed pricing and separate seat reservations, FlixTrain employs dynamic pricing based on expected demand, with tickets serving as both a fare and a seat reservation. This strategy aims to provide a flexible alternative to the established national carrier, though the company's performance has faced scrutiny; a 2024 study by Transport & Environment ranked the operator 20th out of 27 companies based on reliability, amenities, and booking ease.

The company's expansion history is marked by both rapid growth and significant disruption. While it successfully expanded to 70 domestic destinations in Germany by mid-2022, its international ambitions have been more volatile. A venture into Sweden, launched in May 202 moving through cities like Stockholm and Gothenburg, was eventually terminated in 2024 due to maintenance and de-icing challenges. Similarly, planned expansions into France were indefinitely postponed in April 2020 due to high track access costs, and a proposed Berlin to Warsaw connection remains suspended due to planned track closures.

The company's fleet strategy relies heavily on leasing rather than ownership. Early operations utilized refurbished coaches from the 1960s and 1970s, but the company has sought much larger-scale modernization. A massive €1 billion deal with the Russian manufacturer Transmashholding for 65 high-speed coach sets became unfeasible following the 2022 invasion of Ukraine. However, in March 2025, FlixTrain placed a €1.06 billion order with Talgo for 30 locomotive-hauled trainsets, including 15 years of maintenance, intended for use across Germany, the Netherlands, Austria, Denmark, and Sweden.

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