We report on the AAT-AAOmega LRG Pilot observing run to establish the feasibility of a large spectroscopic survey using the new AAOmega instrument. We have selected luminous red galaxies (LRGs) using single epoch SDSS riz-photometry to i<20.5 and z<20.2. We have observed in three fields including the COSMOS field and the COMBO-17 S11 field, obtaining a sample of ~600 redshift z>~0.5 LRGs. Exposure times varied from 14h to determine the minimum exposure for AAOmega to make an essentially complete LRG redshift survey in average conditions. We show that LRG redshifts to i<20.5 can be measured in >>1.5h exposures and present comparisons with 2SLAQ and COMBO-17 (photo)redshifts. Crucially, the riz selection coupled with the three to four times improved AAOmega throughput is shown to extend the LRG mean redshift from z=0.55 for 2SLAQ to z=0.681+/-0.005 for riz-selected LRGs. This extended range is vital for maximizing the signal-to-noise ratio for the detection of the baryon acoustic oscillations (BAOs). Furthermore, we show that the amplitude of LRG clustering is s_0_=9.9+/-0.7h^-1^Mpc, as high as that seen in the 2SLAQ LRG Survey. Consistent results for this clustering amplitude are found from the projected and semi-projected correlation functions. This high amplitude is consistent with a long-lived population whose bias evolves as predicted by a simple 'high-peak' model. We conclude that a redshift survey of 360000 LRGs over 3000deg^2^, with an effective volume some four times bigger than previously used to detect BAO with LRGs, is possible with AAOmega in 170 nights.