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By David Shepardson

OSHKOSH, Wisconsin, July 24 (Reuters) - The new head of the Federal Aviation Administration said on Thursday the current state of the aging, understaffed U.S. air traffic control system is "not acceptable," vowing an aggressive modernization effort.

New FAA Administrator Bryan Bedford also said morale at the agency is "kind of low" after a fatal crash in January near Reagan Washington National Airport killed 67.

The issues plaguing the FAA's air traffic control network have been years in the making, but a rush of high-profile mishaps, near-misses and the catastrophic crash in January between a U.S. Army helicopter and a regional American Airlines AAL.O spiked public alarm.

Congress this month approved $12.5 billion to begin a massive overhaul over five years, while the Trump administration wants another $19 billion. Bedford said at an air show that the U.S. air traffic control system has not been modernized in four decades. "We really do have some significant technology challenges," Bedford said, also calling for FAA leadership improvements and redesigning the national airspace.

"We can do a better job in leadership. We can help the FAA figure out a strategy, especially around modernization," said Bedford, who was speaking at the EAA AirVenture air show in Oshkosh, Wisconsin. "I'd really like to see us create a culture of trust and collaboration and a little more forward leaning."

Bedford, who vowed to be transparent and gave out his email to a large crowd, criticized the administration of Democratic President Joe Biden for not doing more to address air traffic control issues. "Nobody in the Biden administration had any interest in aviation," Bedford said.

The FAA plans to upgrade outdated radar and telecommunications systems, air traffic control towers and other facilities. It also plans to increase the staffing of air traffic controllers and has adopted new incentives to retain controllers.

A persistent shortage of controllers has delayed flights and many are working mandatory overtime and six-day weeks. The FAA is about 3,500 air traffic controllers short of targeted staffing levels. U.S. Transportation Secretary Sean Duffy hopes to address that shortfall within three to four years.

(Reporting by David Shepardson, Editing by Franklin Paul and Diane Craft)

((David.Shepardson@thomsonreuters.com; 2028988324;))