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In the early 1970’s, one of petitioner’s competitors filed a
complaint with the CAB, alleging that petitioner was not just a
courier but also operated as an international air freight
forwarder. The competitor complained that, as a result of the
international freight forwarding, petitioner was required to have
CAB operating authorization, which it did not have at that time.
On April 11, 1972, petitioner filed for CAB interstate and
international operating authorization, and the complaining
competitor objected. CAB regulations prohibited individuals who
were not U.S. citizens from owning more than 25 percent of a U.S.
air freight forwarder. On May 24, 1973, DHL and Dalsey
transferred their DHLI shares to nominees, ostensibly foreign, of
Po Chung for little or no consideration. After that transfer of
the DHLI stock, the CAB, on December 19, 1973, authorized DHL’s
status as an interstate and international air freight forwarder.
Thereafter, the CAB prohibition on foreign “control” of DHL
was a significant factor in corporate and shareholder decisions
to attempt to keep foreign and domestic activities separate.
Operationally, DHL and DHLI, with limited exceptions, were
autonomously managed by their respective officers, but with a
common commitment to the DHL network. The exceptions involved
DHL’s chief executive officer’s responsibilities over DHLI’s
Canadian, Mexican, and Latin American operations. The common
commitment to the network was nurtured by the NSC, consisting of
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