Narrative:

Our flight was holding 45 mi northeast of jfk at 12000 ft. Altimeter setting 28.95, VFR on top. TCASII issued warning followed by an RA, dive, and full red on bottom of ivsi. I pushed nose over to comply and first officer immediately thereafter saw a foreign air carrier 747 out his side window. He told me we were in no danger and that I could regain the 100 ft I had lost. ZNY then asked foreign air carrier its altitude, foreign air carrier responded 13000 ft and there's a us air carrier very close to us. ZNY then asked foreign air carrier its altimeter setting and he responded 29.95, as he had read it back. At that point we were changed to another frequency and exited the hold. The low altimeter setting, along with a crew using english as a second language, in my mind, was the cause of this potentially disastrous situation. I am also puzzled by the late call from center and wonder why the alert they supposedly receive with a 300 ft altitude deviation didn't result in a more timely warning. I recommend that whenever the altimeter is below 29.xx it should be mandatory that ctrs read out settings in the following fashion. Altimeter 28.90, repeat 28.90, readback altimeter. At this time they should be particularly vigilant about hearing the readback as they gave it. Thank you for your attention.

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Original NASA ASRS Text

Title: ACFT 'Y' FLC MISINTERPRETED ALTIMETER SETTING AND ENTERED HOLDING PATTERN AT WRONG ALT.

Narrative: OUR FLT WAS HOLDING 45 MI NE OF JFK AT 12000 FT. ALTIMETER SETTING 28.95, VFR ON TOP. TCASII ISSUED WARNING FOLLOWED BY AN RA, DIVE, AND FULL RED ON BOTTOM OF IVSI. I PUSHED NOSE OVER TO COMPLY AND FO IMMEDIATELY THEREAFTER SAW A FOREIGN ACR 747 OUT HIS SIDE WINDOW. HE TOLD ME WE WERE IN NO DANGER AND THAT I COULD REGAIN THE 100 FT I HAD LOST. ZNY THEN ASKED FOREIGN ACR ITS ALT, FOREIGN ACR RESPONDED 13000 FT AND THERE'S A U.S. ACR VERY CLOSE TO US. ZNY THEN ASKED FOREIGN ACR ITS ALTIMETER SETTING AND HE RESPONDED 29.95, AS HE HAD READ IT BACK. AT THAT POINT WE WERE CHANGED TO ANOTHER FREQ AND EXITED THE HOLD. THE LOW ALTIMETER SETTING, ALONG WITH A CREW USING ENGLISH AS A SECOND LANGUAGE, IN MY MIND, WAS THE CAUSE OF THIS POTENTIALLY DISASTROUS SIT. I AM ALSO PUZZLED BY THE LATE CALL FROM CTR AND WONDER WHY THE ALERT THEY SUPPOSEDLY RECEIVE WITH A 300 FT ALTDEV DIDN'T RESULT IN A MORE TIMELY WARNING. I RECOMMEND THAT WHENEVER THE ALTIMETER IS BELOW 29.XX IT SHOULD BE MANDATORY THAT CTRS READ OUT SETTINGS IN THE FOLLOWING FASHION. ALTIMETER 28.90, REPEAT 28.90, READBACK ALTIMETER. AT THIS TIME THEY SHOULD BE PARTICULARLY VIGILANT ABOUT HEARING THE READBACK AS THEY GAVE IT. THANK YOU FOR YOUR ATTN.

Data retrieved from NASA's ASRS site as of July 2007 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.