ESN Political Silly Season

[Author deleted this entry]

Crunching the Numbers: Will it be enough or not?

It is Tuesday, March 31st, 2007. The time is 19:23 CET.
There still no news on the background of the cancellation and no news about refunding our money. The ESN Train people people are probably right now in the progress of crunching the numbers. Will it be enough to repay us or not? That is the question that young people from all across Europe are interested in right now.

Where is our money?

Hello Folks,
I just had some bad dreams last night. OK, I admit, this is all pretty speculative, so please do not take everything for granted what I am saying. I just hope (for me and all other participants) that the ESN Train people will show that my concerns and assumptions are not correct.

This post is written, because I just fear that a large chunk of the money, we've paid, is lost.

• The cancellation E-Mail by the ESN Train team includes this statement: "we will do everything within our faith to clear all financial issues and to satisfy everybody. [..] we will evaluate our assets." Since I have some experiences how to read press releases, I have the feeling, that the financial state of ESN Train (Platform GmbH) is in absolute shambles.
• Austrian Federal Railways (ÖBB) stated in their press release, that the ESN Train team had already paid EUR 100,000 (out of EUR 800,000 outstanding) to ÖBB. Do you think that the ÖBB is going to fully refund these EUR 100,000, because the ESN Train was cancelled? I don't think so. Most of the carriages were rented from Wagon Slovakia ( http://www.wgske.sk/en ). Bernhard Jäggle hinted in this Youtube video ( http://www.youtube.com/watch?v=TvMjs5yJKmg ) that all the train is still standing at Bratislava train station. Due to that Wagon Slovakia probably wants to have at least some money for the rented cars. And I presume ÖBB will probably transfer money to Wagon Slovakia due to contractual obligations. Moreover, ÖBB reserved tracks, engines and engine drivers with almost 12 railway companies across Europe. Due to this last-minute cancellation, ÖBB is probably obliged to pay these 12 railway companies some money. I have some friends, who work for DB Netz (the German rail infrastructure authority), I am waiting if they can answer me, if a last-minute cancellation of rented track would carry penalties. Because of all these issues I think ÖBB will not fully refund these EUR 100,000. However, this shortfall must be compensated by the ESN Train team. I strongly advise the ESN Train team and the "ÖH" not to blame the ÖBB, if the ÖBB refuses to pay these EUR 100,000 back fully.
  
• If Bernhard Jäggle (President of ESN Train) has acquired sponsorship money, he is most likely asked by the sponsors to pay this money back. I mean, imagine you were the sponsor, but the train does not leave the station - What would you do?
  
• As I said in the last post, the ESN Train team has collected at least EUR 228,000 from participants. This number does neither include the upgrade fee for the 3-people sleeper cabin, nor does it include the EUR 20,- fee for the printed ESN Train guide. Because of that I assume the ESN Train has acquired around a quarter of a million Euros from participants. Now, the ESN Train team is obliged to refund at least a quarter of a million Euros to the participants. Do you think the ESN Train team has EUR 250,000 in their bank accounts ready for us ? If yes, Bernhard Jäggle, his team, and all participants can sleep well. But if not, we are looking for a total fiasco to happen. Let me remind you that the ESN Train team was not able to pay the second tranche of EUR 400,000 to ÖBB. I am scared !!!
  
• Most probably a number of participants will seek damage payments from the ESN Train team (Platform GmbH), because of the breach of contract. Bernhard Jäggle has to find funds for those claims, as well.
  

In that sense I am just hoping that the upcoming press release by the ESN Train team contains some positive news about our money.

Cancelled ESN Train: Your Rights

The ESN Train team practically closed down the ESNtrain.org site. That way the terms & conditions and the original timetable are no longer accessible.
// Now, the ESN Train is online again.
However, I uploaded the original timetable and terms & conditions on sribd.com

http://www.scribd.com/doc/13735553/ESNtrain-Timetable
http://www.scribd.com/doc/13735555/ESNtrainAGBDE

According to the terms & conditions the train can only be cancelled after booking in case of an act of nature beyond control (force majeure).
However, the ESN Train team wrote:

The reason why we had to cancel the project is that we were not able to
raise the needed money before the train was supposed to start, as well
as a misunderstanding with the ÖBB about the payment conditions.

This is not an act of nature beyond control.
The cancellation of the ESN Train constitutes a breach of contract. All damages from this breach must be compensated.

Let me inform the world:

• All ESN Train participants paid everything upfront (in German: Vorkasse). That's why the issue of retrieving the money back from ESN Train (Platform GmbH) is really relevant.
• There was no clause in the terms & conditions, which said, the ESN train would only go ahead if a minimum number of participants was reached or when a certain amount of sponsor money could be secured.

Bernhard Jaeggle wrote on ESNtrain.org:

"Who is supporting and financing the project?

One third of the total costs is financed by the passengers and train visitors. Two thirds by sponsoring and donations as well by a lot of goodwill on the part of the railway companies. Although the train will roll, further sponsors and donators are warmly invited to join."

This statement was probably a major reason why many people booked the ESNTrain and paid the money upfront to a Swiss bank account.
This is pure speculation: But the statement by Bernhard Jaeggle appears to be a lie.