U.S. air traffic upgrade hit by delays, higher costs

A new high-altitude air traffic control system is taking longer than expected to bring on line and at higher costs than planned, a U.S. government watchdog said on Thursday.

The Federal Aviation Administration has already spent $1.8 billion on the system aimed at providing faster routes and safely packing more planes into the high-altitude cruising phase of flight.

Transportation Department Inspector General Calvin Scovel said it could take between three to six years and up to $500 million more to finish the project managed by the FAA and its contractor Lockheed Martin Corp.

Airlines will be required to outfit new planes with cutting edge navigation equipment at considerable cost. Only a few carriers have made even modest investments with industry pushing government to cover a substantial amount of new costs.