Narrative:

Air carrier X, MD80, departed runway 24. Aircraft radar idented on departure and issued climb to 4000 ft and left turn heading 150 degrees. Pilot acknowledged. Approximately 1 min later, aircraft appeared to be on runway heading, low altitude alert went off. Aircraft approximately 2-3 mi off runway departure end, altitude indicated 008. I issued low altitude alert, checked altitude immediately -- altimeter 30.19. No acknowledgement received. Altitude indicated 006. Called tower on landing. I watched altitude descend, then the data tag dropped off. When tower picked up landline, aircraft was indicating 002. As I tried to ascertain if air carrier X could be seen by tower, air carrier X data block was in my coast suspend list. I thought the plane went down. Tower advised air carrier X was climbing sebound. I called air carrier X again. He replied and apologized for transponder.

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Original NASA ASRS Text

Title: N90 CTLR OBSERVES ACR MODE C DISPLAYED IN A DSNDING MODE. CALLING ISP TWR, TWR CONFIRMS ACFT IS CLBING ON ASSIGNED TRACK. PLT ACKNOWLEDGES EQUIP ERROR.

Narrative: ACR X, MD80, DEPARTED RWY 24. ACFT RADAR IDENTED ON DEP AND ISSUED CLB TO 4000 FT AND L TURN HDG 150 DEGS. PLT ACKNOWLEDGED. APPROX 1 MIN LATER, ACFT APPEARED TO BE ON RWY HDG, LOW ALT ALERT WENT OFF. ACFT APPROX 2-3 MI OFF RWY DEP END, ALT INDICATED 008. I ISSUED LOW ALT ALERT, CHKED ALT IMMEDIATELY -- ALTIMETER 30.19. NO ACKNOWLEDGEMENT RECEIVED. ALT INDICATED 006. CALLED TWR ON LNDG. I WATCHED ALT DSND, THEN THE DATA TAG DROPPED OFF. WHEN TWR PICKED UP LANDLINE, ACFT WAS INDICATING 002. AS I TRIED TO ASCERTAIN IF ACR X COULD BE SEEN BY TWR, ACR X DATA BLOCK WAS IN MY COAST SUSPEND LIST. I THOUGHT THE PLANE WENT DOWN. TWR ADVISED ACR X WAS CLBING SEBOUND. I CALLED ACR X AGAIN. HE REPLIED AND APOLOGIZED FOR XPONDER.

Data retrieved from NASA's ASRS site as of July 2007 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.