Sunday, March 29, 2009

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.

8 comments:

  1. Hello! Do you know, what we have to do now to get our money back? Do we have to write an official letter to the ESN Train team with a request to pay our money back or bring a case before the court or just wait until they pay the money back themselves?

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  2. Just one question. Did I really understand that right in the video: They had an internal problem, which they solved last wednesday and THEN they found out that it was not enough time to find sponsors anymore. Things are getting more and more interesting and my sadness about a missed trip is turning to anger, when I find out, that it was never likely, that it would ever take place...!

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  3. @annamaz1612: As of now, I do not want to encourage anyone to bring a case before the court. Give the ESN Train team some time. I hope the next press release by ESN Train would include such a statement: "All money paid by participants will be refunded in full within the next 30 days." If they do so, everyone has to consider himself if it is worth to take additional legal steps for damages against Bernhard Jäggle. Ultimately this is your decision.

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  4. Hey! Thank you for making such an informative and helpful site, for all of us that were scammed.
    I had to buy flight tickets from my home city (Stockholm) to Zurich, and when I arrived to Zurich, I realized that the train was canceled (it was supposed to depart from Zurich the following day). Do you think that I should start legal actions against them to return me the flights money? (It is near 300 euros in total, as I had to buy the flight back just after I realized of the cancellation, and it was 200 euros).
    Thanks for your help!
    sebas.

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  5. No, you cannot recoup any money for the flight tickets, because the flight ticket and the ESN Train are two seperate contracts.
    But any damages that resulted directly from the train cancellation can be claimed.
    Here is my example:
    You may have booked Zuerich-Warsaw (8 nights). Ticket costs EUR 240,-.
    If you decide to travel on your own, you can claim all hostel and train ticket costs in excess of EUR 240,-. If you have to spend EUR 500,- for train tickets + hostels, ESN Train has to pay you back EUR 260,-.
    I assume you have to go to court to retrieve this money, if Platform GmbH (the company behind ESN Train) is still solvent.

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  6. >But any damages that resulted directly from the train
    >cancellation can be claimed.

    But can't we consider the ticket back as a "damage resulted from the cancellation"? I mean, the train was canceled (It was supposed to take me from Zurich to Stockholm - arriving to Stockholm on April 12th), and as a consequence, I had to pay me the flight back to Stockholm. Thanks for the clarification!

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  7. Well, I am not a Law student. I mean it must have been terrible for you in Zuerich.
    The ESN Train ticket probably costs more than the one-way ticket Zuerich-Arlanda (EUR 200,-). I mean the ESN Train team is probably going to refund the ESN Train ticket (Let's hope). And you have to compensate the extra flight ticket with that refund money.
    If the flight ticket is more than ESN train ticket, you can claim that difference, but only then.

    I know this is terrible for you, because you wasted almost EUR 500,- in flight tickets for nothing, because there was not anything to do in Zuerich.
    The flight to/from the ESN Train station is not part of the contract with ESN Train, that's why they are not liable for that.

    But anyway, let's stay in contact.

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  8. thanks. FTR, It's not about making trouble just for fun. I understand that the guys from Platform GmbH are making their best to solve this mess, but as you said before, they were silent until the very last moment, and because of this, many people (including me) made their flights to realize that everything was over. In my case, I made a huge effort to pay my trip, and even if they return the money from the train, I'm loosing a lot of money for the flights, and I won't be able to afford any more traveling. This was a great chance to visit many countries for the very first time in my case, and now I'm very depressed. Some people say that we should have understood the risk involved. Now I feel that instead of paying for a service, I gambled my money in a Casino :(

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