Varig services to Varig. Year-long discussions to merge Varig with TAM Airlines ended unsuccessfully in 2004 and the same year Varig fell to third place in the Brazilian domestic market share, behind TAM and Gol. VARIG applied to the Commercial Bankruptcy and Reorganization Court in Rio de Janeiro on , for the commencement of "judicial reorganization" proceedings pursuant to the New Bankruptcy and Restructuring Law of Brazil (Law 11.101). The request was granted on 22 June 2005. VARIG continued to provide services despite its financial troubles. In order to raise funds, the Bankruptcy and Reorganization Court decided to sell two of
Sun Country Airlines DC-10 in early 2001. In June 1999, the management of Sun Country launched a transformation from a charter carrier into a scheduled airline. New service from Minneapolis and Milwaukee began to destinations including Los Angeles, Seattle, Detroit, Washington, D.C. and Phoenix. The airline also started a frequent flyer program, Smile Awards. In 2001, Sun Country began to replace its entire fleet with Boeing 737 aircraft. As Sun Country reinvented itself, heavy competition from local incumbent carrier Northwest Airlines and the September 11 attacks caused a sharp decrease of traffic and revenue. The airline was losing large amounts of money by