Narrative:

We were holding at 4000 ft MSL at artda ADF. Lansing radar was OTS. Another air carrier checked on north of the field at 5000 ft. He was cleared to artda to hold. Immediately he cancelled IFR and went for the airport. He also went off frequency. We were over artda about to start our outbound turn. Both the first officer and I realized there might be a conflict and tried to alert him and approach control. About 1/2 way through the turn we saw his lights in our 2 O'clock position. TCASII showed him 1000 ft above and descending. We flashed our lights and watched him descend to 700 ft above us, and then climb rapidly as he went over our left wing. I really don't think he knew what he was doing when he cancelled IFR and attempted to descend through a holding pattern with a known airliner in it below him.

Google
 

Original NASA ASRS Text

Title: AN IFR ACR LGT, IN A HOLDING PATTERN, WAS APCHED BY ANOTHER ACR THAT WAS VFR. SEPARATION WAS REDUCED.

Narrative: WE WERE HOLDING AT 4000 FT MSL AT ARTDA ADF. LANSING RADAR WAS OTS. ANOTHER ACR CHKED ON N OF THE FIELD AT 5000 FT. HE WAS CLRED TO ARTDA TO HOLD. IMMEDIATELY HE CANCELLED IFR AND WENT FOR THE ARPT. HE ALSO WENT OFF FREQ. WE WERE OVER ARTDA ABOUT TO START OUR OUTBOUND TURN. BOTH THE FO AND I REALIZED THERE MIGHT BE A CONFLICT AND TRIED TO ALERT HIM AND APCH CTL. ABOUT 1/2 WAY THROUGH THE TURN WE SAW HIS LIGHTS IN OUR 2 O'CLOCK POS. TCASII SHOWED HIM 1000 FT ABOVE AND DSNDING. WE FLASHED OUR LIGHTS AND WATCHED HIM DSND TO 700 FT ABOVE US, AND THEN CLB RAPIDLY AS HE WENT OVER OUR L WING. I REALLY DON'T THINK HE KNEW WHAT HE WAS DOING WHEN HE CANCELLED IFR AND ATTEMPTED TO DSND THROUGH A HOLDING PATTERN WITH A KNOWN AIRLINER IN IT BELOW HIM.

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.