** Shares in Thales TCFP.PA fall 2.2% on read-across from Airbus' AIR.PA jets recall over the weekend due to a software issue

** The vast majority of the around 6,000 A320-family affected aircraft, whose flight computers in question are provided by Thales, have now been modified, Airbus said in a Monday update

** If a hardware fix is needed, it's unclear how quickly it can be implemented, given maintenance, repair, and overhaul and Thales-made ELAC computers capacity

** The broker says risks remain, as "up to 15% of the identified population of affected aircraft may require a hardware fix, where the potential impact is unclear"

** MS also flags uncertainty over whether the affected airlines will be compensated for grounded jets or who would bear that liability

** Airbus shares slip 2.5%

(Reporting by Olivier Cherfan)

((olivier.cherfan@thomsonreuters.com))