Since no damage is actually dealt by anything that blocks the Transport, Leyline Phantom‘s ability won’t trigger if it blocks an Armored Transport, and it will remain happily on the battlefield.
Extra Credit: The above doesn’t apply if you have a static ability such as Everlasting Torment in play. Armored Transport’s ability still tries to prevent the damage being dealt, but Everlasting Torment just says “Nope!” to such a thing and damage will still occur as normal. That’s where we say hello to bouncing Leyline Phantom and to lifelink/deathtouch abilities!
Today’s Rules Tip written by Eddie Cheung