Austria-Switzerland Cabotage 2026: What Changes for Bus Companies in Border Areas

Key data

Passenger transport companies operating coaches and buses covering routes between Austria and Switzerland face a relevant operational opportunity. Decision (EU) 2026/1769, adopted by the European Parliament and Council on 14 July 2026, enables Austria to modify its bilateral road transport agreement with Switzerland and introduce an exception to the EU's general cabotage regime: cabotage operations in border regions during the provision of international passenger services.

This measure responds to a practical need for cross-border mobility in the border areas between both countries, where residents depend on regular connections that, until now, could not be fully optimized due to cabotage restrictions applicable to operators from third countries such as Switzerland.

What does this regulation establish?

Within the framework of European regulation, cabotage — that is, the transport of passengers within a Member State by an operator from another country — is normally prohibited for companies from third countries not belonging to the EU. Switzerland, as a non-EU member, is in principle subject to this restriction.

Decision (EU) 2026/1769 introduces a specific geographic and functional exception:

• Austria is empowered to renegotiate its bilateral road transport agreement with Switzerland.
• The new agreement may include authorization for cabotage operations in border regions between both countries.
• This exception applies exclusively during the provision of international passenger coach and bus transport services.
• The scope is geographically limited to the border areas between Austria and Switzerland, with no extension to the rest of the European road transport market.

The measure does not impose direct obligations on companies, but rather opens the door for Austria and Switzerland to agree bilaterally on the specific conditions under which these operations will be authorized.

Economic and operational impact

The main practical consequence for transport companies is the possibility of eliminating empty runs in border areas. Until now, a Swiss coach that completed an international service in Austrian territory had to return without passengers, and vice versa. With the new authorization, this could change once Austria and Switzerland formalize the modified bilateral agreement.

From an economic perspective, the reduction of empty runs represents direct savings in fuel costs, maintenance, and driver hours. Additionally, the ability to capture local passengers in border areas can generate additional revenue on routes that previously did not contemplate this.

The impact is limited: the Decision does not affect the overall European road transport market or routes that do not pass through the Austria-Switzerland border regions.

Who does it affect?

• Passenger transport companies operating coaches and buses with regular or occasional routes between Austria and Switzerland.
• Austrian operators providing international services with stops in Swiss border areas.
• Swiss operators providing international services with stops in Austrian border areas.
• Tourism and occasional transport companies organizing cross-border excursions or transfers in the region.
• Fleet managers and operations directors responsible for planning Austria-Switzerland routes.

Freight transport companies are not affected, nor are companies operating routes that do not include the border regions between Austria and Switzerland.

Practical example

An Austrian transport company operates an international line between Vienna and Zurich with stops in the border region of Vorarlberg (Austria) and the canton of St. Gallen (Switzerland). Currently, upon arriving in Zurich, the coach cannot pick up local passengers to take them to another stop within Switzerland before starting the return journey, as this would constitute unauthorized cabotage.

Once Austria and Switzerland formalize the modification of their bilateral agreement — enabled by Decision (EU) 2026/1769 — that same company will be able to pick up and drop off passengers at Swiss border stops during the international journey, optimizing vehicle occupancy and reducing empty kilometers in the border area. The result: greater operational efficiency and potential for additional revenue without needing to add extra services.

What should companies do now?

1. Identify if you operate Austria-Switzerland routes with stops in border areas. The measure only applies to international passenger coach and bus services that cross the border regions between both countries.
2. Monitor the renegotiation of the Austria-Switzerland bilateral agreement closely. Decision (EU) 2026/1769 enables the modification, but cabotage will not be effective until Austria and Switzerland sign the updated bilateral agreement. Track developments at the Austrian Ministry of Transport and the equivalent Swiss body.
3. Analyze the potential for route optimization. With the new authorization, review which empty runs could be converted into passenger services and what the impact would be on costs and revenue.
4. Consult with legal advisors specialized in international transport before beginning cabotage operations in border areas, to ensure that the bilateral agreement is already in force and that you comply with the specific requirements it establishes.
5. Update contracts and service documentation if you begin operating with cabotage in border areas, including the permits and authorizations required by the new bilateral agreement.

Official source

Consult full regulation at official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601769