Jason's post was very well reasoned and points out many of the problems. CHS also failed to fund the operation properly as there was no over the winter maintenance as was done by the previous operator.
As to steam, all of the of the Loop’s promotional material feature steam and I know that many riders will either stay away or seek a refund if the trains are diesel powered. You only need to look at the other tourist operations that feature steam to what would happen if suddenly the Strasburg or the D&S dieselized. Look at the many operators are now spending big bucks to put steam back in service.
All those who thought that this operation was a "cash cow" should by now know such is not true. Yes, it was profitable but not to the level envisioned by CHS and the others who felt this would throw off lots of cash.
I have taught railroad operations, written extensively on the subject and worked for railroads that operated tourist trains and I know the economics and the operational problems. Our operations were standard gauge and flat land with major populations and other tourist draws nearby
It's now reached the point where positions have hardened and if CHS admits the mistakes, they face a loss a prestige and public embarrassment. Until there is a change in attitude or possibly management, I think we’ll see one problem after another.
What a shame as the Loop had been one of the most successful operations in the U.S.
BTW, another picture from Eire Canal Village.