You're definitely better off if you remove the paint before repainting: otherwise more paint will only hide more detail. I'd go with the alcohol. Your loco looks like an RS-3, and if it's the Atlas version, do not use brake fluid as a paint remover, as it will destroy the bodyshell very quickly.
The plastic is most likely black, so a grey primer might be a good idea if you're planning on a maroon repaint. I use Floquil Grey Primer, but any flat, light grey paint would likely work. Allow the primer to dry for at least 24 hours before applying subsequent coats.
When you spray, thin the paint according to the manufacturer's suggestions and use the recommended air pressure. Test your spraying technique on a piece of cardboard beforehand, and if need be, practise further before attempting to paint the loco. Get the paint flowing through the airbrush before the spray hits the loco: in other words, start spraying either to the left or right of the loco, then smoothly move along the side without releasing the trigger, until you have sprayed beyond the opposite end of the loco. Don't move too fast, or the coverage will be too thin. Too slow, and the coverage will be too heavy and may also cause sags or runs in the paint. Try to maintain a constant distance from the loco, and never stop with the spray on the loco. Several light coats are much better than one or two heavy ones. I spray in a back-and-forth motion, and work from top to bottom, without stopping the paint flow. By the time the ends and other side have been sprayed, you should be able to apply a second coat to the first side, working continuously until the first colour has been done completely on the entire loco.
If you can disassemble the loco before painting, do so, as it makes the job much easier. If you can't remove the cab, you'll find that it may be difficult to paint the inside corners where the cab ends meet the sides of the hood. A useful tip to aid with this task is to drop the air pressure, up to half what is recommended, then paint the problem area first. Return the pressure to normal to complete the job.
If you need to mask for additional colours, make sure that the paint is fully cured before applying tape. Many people use the green or blue masking tape, but I prefer the regular stuff, which seems to cling better with the lacquer-based paints that I prefer. To apply tape, place a strip of it face-down on a sheet of glass - use a straightedge to ensure that it's straight on the glass, then use the straightedge and a new blade in your X-Acto to trim away both factory edges, as they often have irregularities that will affect the sharpness of the colour division. Also, the adhesive on the edges, particularily on older tape, is sometimes slightly dried out, resulting in a poor seal when applied to the model. I use dividers to plot out the tape widths required, based on the model, photos of the prototype, and also the decals that will be used. Use them to mark the tape, then cut to fit while still on the glass, using a sharp blade. Accurate cutting usually means that you can use details cast onto the body shell as reference points for placing the tape, ensuring that it's straight and in the proper position. Use your fingernail or a suitable tool to work the tape over protruding details, and ensure that the edges are tight. After you've applied the second colour, remove that tape as soon as the paint is dry to the touch. This should give you just enough time to thoroughly clean your airbrush first. Use the tip of the knife to lift one end of the tape, if necessary, then slowly peel the tape back over itself at an angle as acute as possible - this lessens the chance of the tape lifting the paint over which it's been applied. Don't worry if there are small areas where this occurs or areas where the second colour has bled under the tape: after the paint has fully cured, these areas can be touched-up using a fine brush. Have fun.

:-D
Wayne