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Air Transat Reports Jet Rudder Mishap, Shares Slip

MONTREAL (Reuters) - Shares of Transat AT Inc , the parent of Air Transat, fell more than 2 percent on Monday, a day after one of its airplanes lost part of its rudder during a flight from Cuba.

Shares of the vacation airline were off 74 Canadian cents or 2.7 percent at C$26.81 on the Toronto Stock Exchange on Monday afternoon.

Air Transat said Flight 961 from Varadero to Quebec City, which had 261 passengers and nine crew on board the Airbus A310, had to return to Varadero about 30 minutes after takeoff on Sunday afternoon because of a mechanical failure.

"Preliminary observations indicate that a portion of the rudder detached from the aircraft as the flight was progressing under normal conditions at its cruising altitude," Air Transat said in a statement.

The flight landed without incident or injury in Varadero, a beach resort area 140 km (88 miles) east of Havana. Passengers were to be flown to Quebec City on Monday.

European defense group EADS is the parent company of Airbus.

Air Transat said it visually inspected its nine other Airbus A310s and found no anomalies. The inspection caused delays on certain flights but no cancellations, it said.

Air Transat said it had advised Airbus, Transport Canada and the Transportation Safety Board of the incident, saying the safety board will investigate.

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