What happens if we assign a non-discrete squawk code (ending on 00) like 0200?
Is there any particular reason for non-discrete squawk codes to be used only for special purposes and not for identification?
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If we only assign the non-discrete squawk code to one aircraft, the radar system would not see the situation as any different than if we assigned a discrete squawk code. Of course the idea behind a non-discrete code is that it may be assigned to more than one aircraft at the same time in the same area.
Older technology had a harder time keeping track of multiple aircraft squawking the same code. Newer radar equipment, particularly (as I understand it) because of technology like Mode S, is better about distinguishing targets even if they are squawking the same code; for example we can have multiple VFR
1200 codes flying around and we can manually associate data block information with each target, and the system will keep the tracks separate. But there is increased risk of confusion (datablock switching or jumping) if non-discrete targets get close to each other, compared to if the targets were on different codes.