5. Improving Service for International Express Mail
        and Air Parcels
The Postal Service continues a multi-year process of improving the reliability and features of its expedited and package service offerings. In 2000 Global Express Guaranteed® was established. This offering now provides premium guaranteed service at a premium price. To complement this service, and to clarify related options for customers, International Business has taken steps to transform its existing Global Express Mail™ and Global Air Parcel services into a consistent and reliable menu of companion options that are predicated on days to delivery and geographic service area. These services have been designed to offer reliable two-day, four-day and six-day service options to the major cities in Europe, and corresponding three-day, five-day and seven-day service options to major cities in Asia. The absence of day certain delivery will permit these services to be value-priced under Global Express Guaranteed.

To launch these service-related distinctions, the Postal Service took two important steps during fiscal year 2001. First, new pay-for-performance agreements were negotiated with those foreign postal administrations with whom service and traffic warranted improvement. These new agreements, which establish penalties for failure to scan, track, and deliver items on time, codify the basis for service improvement. Second, the concept of a new delivery approach to provide of Global Express Mail and Global Air Parcels to continental Europe, with emphasis on levels of service, was fully developed. This concept has culminated in an agreement that replaces numerous separate bilateral arrangements with European posts, and offers the advantage of standardizing scanning and delivery procedures that are uniform.