Narrative:

We were initially cleared to 11;000 ft MSL. Holding short of the runway; tower cleared us for takeoff and said to maintain 3;000 ft. We read it back and set the altitude. This is where the disconnect happened. Airport elevation is 2;885 ft. Tower may have said 13;000 ft; but we set and read back 3;000 ft. On departure; we got an altitude alert. I asked what altitude he gave us. The first officer started to level and I told him to keep climbing as I told the tower we need higher. The tower cleared us to 7;000 ft. When the first officer leveled off; we sank a little and got a sink warning. It was all one fluid motion from climb to level to sink to climb then flap retraction. Approximate location: just off departure end or runway. Departure: I really still can't understand how we messed this up. What were we thinking when we were cleared to 3;000 ft? Maybe 3;000 ft AGL? I believe it was lack of communication between us and the tower.

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Original NASA ASRS Text

Title: B737-700 flight crew; immediately after take-off; began an erroneous level-off 175 FT above airport elevation and received GPWS warning.

Narrative: We were initially cleared to 11;000 FT MSL. Holding short of the runway; Tower cleared us for takeoff and said to maintain 3;000 FT. We read it back and set the altitude. This is where the disconnect happened. Airport elevation is 2;885 FT. Tower may have said 13;000 FT; but we set and read back 3;000 FT. On departure; we got an altitude alert. I asked what altitude he gave us. The First Officer started to level and I told him to keep climbing as I told the Tower we need higher. The Tower cleared us to 7;000 FT. When the First Officer leveled off; we sank a little and got a sink warning. It was all one fluid motion from climb to level to sink to climb then flap retraction. Approximate location: Just off departure end or runway. Departure: I really still can't understand how we messed this up. What were we thinking when we were cleared to 3;000 FT? Maybe 3;000 FT AGL? I believe it was lack of communication between us and the Tower.

Data retrieved from NASA's ASRS site as of July 2013 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.