Shortly after takeoff the flight crew experienced a smell and smoke/mist in the cockpit. The cabin crew also reported smoke in the cabin. The commander decided to return to land and while approaching the end of the downwind leg the smoke began to dissipate. The landing was uneventful. The aircraft had been dispatched with a seized Air Cycle Machine (ACM) in Pack 1, and in accordance with the Minimum Equipment List it had been activated in ‘heat exchanger mode’ after takeoff. It is probable that, in this mode, the air flowing through the damaged ACM produced the smell and smoke/mist.
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