In addition to the management problems, Transbrasil was also facing other difficulties, specially the reduced or no profit from its international routes, severe competition from other companies in the domestic front (specially TAM, a former air taxi company with a growing fleet) and growing expenses. Following the September 11, 2001 terrorist attacks, despite several government loans, Transbrasil was amassing huge debts with several suppliers. When Shell refused to further supply fuel without payment, Transbrasil's then aging and reduced fleet was grounded on 3 December 2001. It never returned to the air, and was declared bankrupt in 2003 at the request of one of its major debtors - GE Capital Aviation Services.
