If a transponder fails in flight, the aircraft essentially becomes "invisible" to secondary surveillance radar used by Air Traffic Control (ATC) and the Traffic Collision Avoidance System (TCAS) on other planes. The pilot must immediately notify ATC of the failure. Depending on the airspace, ATC may allow the flight to continue to its destination using Primary Radar (which reflects off the plane's metal skin but doesn't show altitude) or by maintaining "procedural separation." However, if the aircraft is in highly congested "Class A" or "Class B" airspace where a transponder is mandatory, ATC may direct the pilot to exit that airspace or land at the nearest suitable airport. In 2026, with the widespread use of ADS-B Out, a transponder failure is a significant safety event, requiring pilots to rely more heavily on "see-and-avoid" techniques and constant radio communication with controllers.