7700 is a general emergencysquawk. It tells ATC that there is a problem of some sort with a particular plane.
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Squawking 7700 in an emergencyThe most well know of these is the code 7700. This is used to indicate an emergency of any kind. A pilot will enter this when in an emergency situation - either instructed by ATC after declaring an emergency or without communication if there is no time.
A Squawk 7700 indicates an emergency. This can be an emergency of any kind. Pilots may input it into the transponder themselves – or when instructed to do so by ATC. As a result, ground control will know that the aircraft is dealing with a serious issue and needs help.
If you're already in communication with ATC, you shouldn't squawk 7700 unless the controller tells you to do so. However, if you're not in communication with ATC, squawking 7700 while transmitting on 121.5 is a quick way to get help.
Code 7600. Code 7600 is the code for a loss of radio. If a pilot's radio goes out during a fight, they can enter 7600 into the transponder. Then they should proceed to their intended airport following a standard landing plan. Pilots should be extra careful and on alert for other aircraft around them in the sky.
Red: When an aircraft is displayed as red that means that you are currently following that specific aircraft on the map or that the aircraft's transponder is squawking an emergency code. These codes are 7500 (Hijack), 7600 (Communication Equipment Failure), 7700 (General Emergency)
“Squawk 1234” means to just dial 1234 into your transponder. The ATC radar will show the controller that number in the tag associated with your plane. If the tell you, “squawk 1244 and ident”, you should put in the code first, and then press and release the Ident (or ID) button on the transponder.
For example, 1200 in the USA means that the flight is flying under Visual Flight Rules (VFR) and is not typically in direct contact with ATC. 1200 is a shared code so you may see many aircraft transmitting it at the same time in a given area.
Under normal, non-emergency operations, it is important to avoid using the transponder codes of 7500, 7600, and 7700 while switching (aka “cycling”) codes. It is easy to see how a pilot could easily switch to one of these 3 codes on accident.
It's not very common these days. Squawk (transponder) is primarily for ATC purposes, and if you're already talking to ATC, there's usually no reason to squawk 7700. Modern radar automation systems give the controller the capability of mimicking a 7700 squawk for an aircraft with a simple keyboard entry.