Originally Posted by Janda
The transponder was ok till the controllers tell them to turn to the correct level. Then had a malfunction. But the Legacy hit "something", they need help and Shazam!, the transponder is ok!
There is a known problem and outstanding AD (airworthiness directive) regarding some Honeywell transponders:
http://www.tdatacorp.com/iaprch/06-19-04.htm
If you're not quick enough in changing the code, the unit drops into SBY. It would come back on-line as soon as they (quickly) dialed 7700 which I imagine they did after the collision.
(Disclaimer: I fon't know if this particular airplane had this model XPDR.)
Do not believe everything in the media, whatever their nationality.