The Fourth Railway Package – public hearing – Brussels 7 may 2013

1. The Fourth Railway Package – public hearing – Brussels 7 may 2013 Public hearing: Committee of Transport and Tourism Brussels 7 May 2013 Newcomer´s perspective

2. WESTbahn – facts • leather seats • 4 Bistros • Free WiFi • 4 to 10 Stewardesses / Stewards per train • house-tariff tickets: valid for 1 year • refund, exchanges for free • passenger charter (-25/50%)  compensation for delays automatically credited ticket = coupon • route: Vienna – Linz – Salzburg – Freilassing • timetable 2013: about 3,16 million train kilometers • almost hourly traffic • 7 trains sets – double-deck – 501 seats; 200km/h

3. WESTbahn - expectancy before market entry • fair chance for invest payback • fair competition • non-discriminatory conditions

4. WESTbahn – report • traffic permit & security certificate – in time, done • Vehicle homologation • in Switzerland – cross acceptance Austria (no automatic recognition of safety engineering in Germany) • first WESTbahn timetable • concept phase – outlook: travel time 2:45 Vienna – Salzburg • first timetable offer: travel time 3:00; including a stop of 8 min (overtaking by ÖBB PV AG) • regulatory proceeding  in august 2011: settlement reached • most trains  travel time: 3:00 • current timetable 2013 • path allocation coached by regulator (2012) – fast compromise reached • customer view: 4 long-distance trains departing/arriving from/to Vienna within 20 min – afterwards 40 min no service suboptimal result for the customer 

5. WESTbahn – report • competitive environment • March 2010: amendment in the Austrian Federal Procurement act to allow direct awards over 100.000€ for public rail services • February 2011: direct award retroactively from 4/2010 given to ÖBB-PV AG • for 71,1 million train kilometers (timetable 2011) = nearly 80% of all local and long-distance services of ÖBB-PV AG • Long-distance trains from Vienna-Salzburg are not part of the direct award • WESTbahn started legal actions: pending at supreme administrative court • current: new direct awards  last announcement for direct award 3/2013: Linz-Graz for IC-trains to ÖBB-PV AG; starting from 12/2013 ( today served by WESTbus-offer) • pricing: • Three months before market entry of WESTbahn; new national offer from ÖBB-PV AG starting from 9€ • After annual price increase between 2005-2009  from mid 2009 to today: just one price increase mid 2012 WESTbahn: complaint before the federal competition authority • Trains Vienna-Salzburg-Innsbruck-Switzerland: from Salzburg westwards with subsidies

6. WESTbahn – report • Infrastructure-usage fee: • since 2012 strong increase – before: yearly small increase • regulator initiated a proceeding • Non predictable costs  high risk for newcomers to fail economically. • Direct award to ÖBB-PV AG for nearly 80% of all regional-and long-distance train services includes the clause that additional infrastructure usage fees will be refunded by the state

7. WESTbahn – report • operative settlement • few problems (sometimes local and after interruptions in the line security system) • infrastructure: timetable information, platform information, announcement of trains,.. • non-discriminatory train management on the line • customer information and promotion: • real-time data no access was granted WESTbahn  regulatory proceeding resulted in a question and predecision of European Court of Justice  in the meanwhile: access to the data has been granted by ÖBB-Infrastructure • positioning of WESTbahn-promoters in the railway stations: at the beginning ÖBB Infrastructure fixed small sections to move/stand (1 x 1m); Security monitoring, high cost allocation for WESTbahn (regulator: different to ÖBB-PV AG) regulatory proceeding: ÖBB Infrastructure position was refused – now free access – free movement in the stations • timetable and price-info-columns: first ÖBB Infrastructure approved only 50% of all ordered places in railway stations  regulatory proceeding: a few days before decision meeting of the commission; all locations approved • contracts with advertising companies imposed a ban on WESTbahn orders for station advertising  intervention of regulator: changed contracts with regulator help    

8. WESTbahn – report • essential facilities: • WESTbahn timetable integration in ÖBB-PV AG system “Scotty”  after antitrust proceeding: WESTbahn was integrated  ticketing-link still refused • timetable 2013, 2014 – path allocation • timetable 2013: Regulator coaching from the beginning - compromise • timetable 2014: currently smooth handling • competition issues outside of the scope of the 4th railway package • transport associations in Austria • old contracts - for example in Salzburg - allow the incumbents (rail and bus) the exclusion of newcomers up to four years from the normal revenue sharing • account payments: long delays • financing: Eurofima with state guarantee financing versus free market financing for the newcomer 

9. WESTbahn – expectation versus reality • further improvements in non-discriminatory culture required • support of regulator is essential – more competences needed for regulatory bodies • private investors need predictable conditions  unpredictable infrastructure cost development kills businessplans • Customer-oriented timetable - even with competition (not 4 trains in 20 minutes – 0 trains in 40 minutes).