CONFLICT WITH FGT WHO OVERSHOT ALT ACCOUNT FALSE GPWS.

Narrative

FLT WAS LEVEL AT 11000; APCH DOWNWIND; WHEN APCH CTL ISSUED TFC -- 2 FGTS CLBING SBOUND; CLRED TO 10000 FT. FO (PF) SAW TFC AND; AT THE SAME TIME; TCASII ISSUED FIRST A TA; THEN AN RA. OUR TCASII SHOWED THE FGT LEVELING AT 11200. THEY PASSED 2-3 MI IN FRONT OF US. WE SAW TFC THE WHOLE TIME AND DID NOT TAKE EVASIVE ACTION. HAD WE BEEN IMC AND/OR 2-3 MI AHEAD; THE STORY MIGHT HAVE HAD A DIFFERENT ENDING; FOR TCASII TOLD US TO CLB. COMMENTS: 1) I SPOKE TO THE TWR CHIEF SHORTLY AFTER LNDG; AND HE CONCURRED THAT THE FGT VIOLATED OUR AIRSPACE BY NOT ADHERING TO THEIR CLRNC. 2) FOLLOWING AN RA COULD HAVE CAUSED US TO CLB INTO THE TFC. APPARENTLY HE (THEY) MISTOOK HIS CLRNC TO 10000 FOR 11000. SUPPLEMENTAL INFO FROM ACN 258535: IMMEDIATELY AFTER TKOF ON RWY 08 ABQ IAP; SWITCHED FROM TWR TO DEP. INSTRUCTED R TURN 160 DEGS; CLB TO 10000 FT. SHORTLY THEREAFTER; FGT EXPERIENCED A GND COLLISION WARNING. PLT SNAPPED NOSE UP; CHKED TERRAIN (LESS THAN 1 MI AWAY). TOPPED OUT AT 11000 FT; IMMEDIATELY DSNDED BACK TO 10000 FT. RESET ELECTRICAL SYS AND CONTINUED. WE HAD THE AIRLINER IN SIGHT AT ALL TIMES; DID NOT FEEL THERE WAS A CONFLICT. AFTER LNDG; FGT WAS DETERMINED TO HAVE BEEN EXPERIENCING FALSE WARNINGS DUE TO RADAR ALTIMETER BUS FAILURE.