GrandLuxe aka American Orient Express

PClark wrote:I have just learned that Grandluxe will cease operations upon arrival of the train at Tacoma on August 28.

Passengers booked on subsequent planned tours have been notified by mail.

According to a report of the letter, the operator MAY not be able to refund any monies paid in advance by intending passengers.

Likely, Grand Luxe's apparent demise puts up the Adios drumhead for any future "luxo" operations. Guess the only way to experience today what I experienced "back when' is either to sign up for a "PV" rail tour or 'get connected' to the extent needed to be invited aboard a Class I's "executrain".

no mention of their demise on their website:
http://www.americanorientexpress.com/
It makes me wonder how Colorado Railcar is doing, they are parent company of Grand Luxe as I recall.
Their website is down to minimum info, no big bragging stories of DMU anymore Etc.
http://www.coloradorailcar.com/dmuhome.htm

Gilbert B Norman wrote:

PClark wrote:Likely, Grand Luxe's apparent demise puts up the Adios drumhead for any future "luxo" operations. Guess the only way to experience today what I experienced "back when' is either to sign up for a "PV" rail tour or 'get connected' to the extent needed to be invited aboard a Class I's "executrain".

Gilbert - From what I can see as regards to advertisement, reports, and recommendations, the "Royal Canadian Pacific" is supposed to be a wonderful trip with none of the dog and pony antics described by persons associated with the Grand Lose...I mean Luxe.

PClark - If intended passengers are refused deposits accepted previously by Grand Luxe, I have only four words of advice-
Federal Class Action Suit.

Mr. Third Rail, in a Bankruptcy proceeding, customer deposits are not any class of preferred creditors, such as are employee wages or taxes. While the presiding Bankruptcy judge may include those creditors as preferred, they have no statutory preference beyond that of any other general creditor.

But let us be mindful that at this time there are no reports that either GL or its parent, Colorado Railcar, have yet petitioned for Bankruptcy protection. If such a petition is filed, it is a matter of public record.

Gilbert B Norman wrote:Mr. Third Rail, in a Bankruptcy proceeding, customer deposits are not any class of preferred creditors, such as are employee wages or taxes. While the presiding Bankruptcy judge may include those creditors as preferred, they have no statutory preference beyond that of any other general creditor.

But let us be mindful that at this time there are no reports that either GL or its parent, Colorado Railcar, have yet petitioned for Bankruptcy protection. If such a petition is filed, it is a matter of public record.

Well, Gilbert, you answered the question I was going to pose, that being "Has Grand Luxe filed for bankruptcy ?" I would think if either there is no indication, or if it is undecided, that perhaps now may be the time to file (?) I'm sure that you are more knowledgeable than I in a matter such as this. Would there be no mandatory insurer for a carrier such as Grand Luxe ? I would think that there would have to be, and that more than likely that it would have to be set up to be used in such a situation whereby person(s) gave Grand Luxe considerable monies in good faith, that Grand Luxe may be indicating will not be returned. (?) (I would hate to think that the public did not have such protection.)

This comes as no surprise to me. Even before the economy tanked I said that there were signs that GL was lightly capitalized, and poorly run. Plus there is a history of none of these land cruise companies ever being able to be viable.

Here is major newssource confirmation:

http://travel.latimes.com/daily-deal-bl ... compa-2606

TRAINS Newswire also has a piece by Passenger Train Correspondent Bob Johnston

At this time, I am prepared to consider the story as "confirmed".

There is an interesting point noted in discussion of this matter over at another site, and that involves the Social Security/Railroad Retirement issue. As likely anyone within the railroad industry knows, the contributions (tax) required from both employer and employee is considerably higher for RRTA than that for Social Security. While under the latter Act, employer and employee make equal contributions, RRTA calls for an employer contribution roundly treble that of the employee. What I must wonder if GL had "paid into" RRTA from the "get go", or did they "pay into" Social Security on the strength they were a subsidiary of a non railroad parent, Colorado Railcar. If there was a subsequent redetermination made that GL employees were "railroad employees' as defined within the RRTA, then the assessment of back taxes could prove to be very....VERY costly.

Finally, it appears that a passenger desiring protection from a transportation company default should consider the purchase of insurance coverage such as outlined in the linked material, for in the event that Grand Luxe petitions for Bankruptcy protection, there is no rule of law giving customer deposits preferred creditor standing such as employees and taxing authorities hold.:

http://www.totaltravelinsurance.com/ban ... urance.asp

3rdrail wrote:

Gilbert B Norman wrote:

PClark wrote:Likely, Grand Luxe's apparent demise puts up the Adios drumhead for any future "luxo" operations. Guess the only way to experience today what I experienced "back when' is either to sign up for a "PV" rail tour or 'get connected' to the extent needed to be invited aboard a Class I's "executrain".

Gilbert - From what I can see as regards to advertisement, reports, and recommendations, the "Royal Canadian Pacific" is supposed to be a wonderful trip with none of the dog and pony antics described by persons associated with the Grand Lose...I mean Luxe.

PClark - If intended passengers are refused deposits accepted previously by Grand Luxe, I have only four words of advice-
Federal Class Action Suit.

A more affordable option to the “Royal Canadian Pacific” is VIA’s Canadian which offers a comparable product to “GrandLuxe”. No risk of losing your money due to bankruptcy either: it’s government operated and the Canadian Government has been running a budget surplus for years (too bad they can’t find a bit more for VIA!)

There is also “Easterly Class” on the Ocean but for all-round good value and fares the average person can afford I would recommend VIA’s Chaleur: Classic Budd stainless steel coaches & sleepers, excellent meals, a dome (but not a Park Car) and great scenery! The Chaleur has had it’s problems this summer with a bridge washed out in a storm in early August but it’s been re-built and the schedule will be back to normal next week.

Looks like this is not a rumor:

"GrandLuxe Rail Journeys, which runs luxury train tours in the U.S. and Mexico, is halting operations this week, customers are being told. Officials of the Evergreen, Colorado, company, formerly American Orient Express, did not return phone calls seeking comment. The company website gave no hint of problems.
But Bob McMillen, chief executive of Travelwizard.com, a company in San Rafael, California, that books luxury travel, said GrandLuxe today sent a letter to customers stating that it “will cease operations with the return of the train to Tacoma [Washington] on Thursday morning, Aug. 28, 2008.” The notice said the company was “financially unable” to continue operations."

http://travel.latimes.com/daily-deal-bl ... ompa-2606/

I have tried calling the toll-free reservations number for over 24 hours and after being in hold for periods of 20-45 minutes each time I was never able to get through to an representative. Also, an e-mail to thier HR dept. and Webmaster were returned from thier server.

It was a good run.

I hadn't tried them since the GrandLuxe purchase, but my wife and I took two trips on AOE: Santa Fe - Salt Lake - Denver as "National Parks of the West" about 10 years ago and Chihuahua - Nogales as "Copper Canyon Adventure" a few years later. Both featured well-maintained equipment, good service and rare mileage. We did manage to be just about the youngest customers on either trip, barring one 20-something who was with his parents. I'm sure the equipment will find a new home, but I expect insurance costs will be a factor in any future uses.

Is there anyone in/around Tacoma who has seen the GL equipment since its shut down?

If the train has left Tacoma, has anyone seen it since?

Hasn't AOE and GL contracted with the CEECO rail car shop facility at Tacoma for work such as periodics and even "heavys"?

Gilbert B Norman wrote:Hasn't AOE and GL contracted with the CEECO rail car shop facility at Tacoma for work such as periodics and even "heavys"?

I believe that this is correct. It may be that CEECO might feel connected to this equitment, and is willing to store it in order to protect it in hopes that they will ride again. The way GL went down it is likely that there is no money at all, thus left to Rader they woul rot someplace. This is all speculation, but there is reason to think they are still in Tacoma.

The trains are parked in the Napa Valley pending sale.

Here is the website:

http://www.luxuryrailcars.com/

The good news is they're trying to sell it as a complete train.

we are entering into at minimum a moderate recession, and in all likelihood something worse, and the credit markets are currently not working. Without a pre sale favorable contract with Amtrak for carriage I can't fathom a scenario where most of these cars get sold for better than scrap value. The dinning and lounge cars they hope to go to NAPA wine train or some other such operator, who might bite....but the rest?? Look at the rail tour slide show....30% of the cars are dinners or lounges but in the show 90% of the pics are of these cars, only one sleeper pic. Why? because no one has an use for these sleepers.