Skyhawk 172/Cutlass 172
Flight Crew Commercial; Flight Crew Flight Instructor; Flight Crew Instrument
Situational Awareness; Training / Qualification
Conflict NMAC; Deviation / Discrepancy - Procedural Clearance; Deviation / Discrepancy - Procedural Published Material / Policy
Flight Crew Took Evasive Action
Aircraft; Human Factors
On a VFR training flight to Catalina Airport; we were receiving flight following from SoCal Approach. The Approach Controller advised that there were multiple aircraft approaching Catalina Airport and to change to advisory frequency. Due to the high volume of traffic; I had the student remain clear of the traffic pattern and hold at pattern altitude; 5 NM North of the airport. Three (3) aircraft reported 45-degree entry to the downwind for runway 22 almost simultaneously.I instructed the student to continue holding until we could sequence into the traffic pattern behind the number 3 aircraft. As we continued holding with all lights on the aircraft illuminated; Aircraft Y reported entering the pattern downwind. All of the traffic was indicated on the Traffic Information Service Broadcast. As the student continued holding north; I observed Aircraft Y with the landing light illuminated climbing straight at our aircraft on about a 340 heading at our 2 o'clock position. It was converging as it appeared stationary in the wind screen. Aircraft Y did not begin to alter its course so I realized the pilot did not see us.As Aircraft Y neared; I quickly took the controls and immediately initiated a diving left turn away from the traffic. The aircraft lost separation; however; I was able to see and avoid the conflicting traffic. I am not sure if Aircraft Y was departing or arriving as it was 4NM north of the field. We sequenced into the number 3 position and landed at Catalina without complications. The problem arose when multiple aircraft began converging on Catalina Island on a [busy] afternoon. The traffic pattern and CTAF became congested very quickly. In the future; when multiple aircraft are arriving; I will hold 5-10NM away from the airport and wait until the pattern clears. Additionally; I will maintain see and avoid scanning procedures; monitor TIS-B; and monitor aircraft position reports broadcast on CTAF.
C172 instructor reported an NMAC while holding outside of the traffic pattern waiting to get in.