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to the DHLI corporate entities as a “network fee”. Although DHL
was DHLI’s pickup and delivery agent in the United States and
vice versa, neither paid a fee to the other, and each was allowed
to retain the full amount charged to the initiating customer
until 1987.
The only exception to this reciprocal arrangement was the
on-forwarding fee that DHLI charged to DHL through the 1986 year
for some 10 destinations in the Middle East and Southeast Asia
because of the great distances from the entry gateways to those
destinations. The reciprocal no-fee arrangement was allowed to
exist during the 1970’s and until 1986. No specific method had
been developed to account for each shipment during that time.
As of 1992, the DHL network extended to approximately 195
countries. In each of those countries (other than the United
States), pickup and delivery functions were performed either by a
local operating company that was a corporate affiliate of DHLI or
MNV, or by an independent agent. Most of the local operating
companies were subsidiaries of MNV. Thus, MNV (through its
subsidiaries) provided pickup and delivery services in many
countries, while DHLI operated the network that linked those
countries together.
As of 1988 the DHL network was, internationally, the third
largest air courier company, with a global market share of about
8 percent, of which somewhat less than 40 percent arose from
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