The Civil Aviation Authority of Nepal (CAAN) has suspended three employees of the air traffic controller department for "carelessness," according to CAAN spokesperson Jagannath Niraula.
On Friday morning, a Nepal Airlines Airbus A-320 flying from Kuala Lumpur, Malaysia, and an Air India plane flying from New Delhi nearly collided.
According to Niraula, the Air India plane was descending from 19,000 feet, while the Nepal Airlines plane was flying at 15,000 feet at the same spot.
The Nepal Airlines plane fell to 7,000 feet when the radar indicated that the two planes were close, according to an airline representative.
The Civil Aviation Authority has appointed a three-member investigation group to look into the situation.
The three officers in command of the control room at the time of the event have been suspended by the CAAN.