Italian ministers have demanded Alitalia's future be resolved

Infrastructure minister Antonio di Pietro's remarks came after ministers failed to find a buyer for the state's 49% stake in the loss-making firm.

The government has warned that the airline could face liquidation unless it can attract fresh investment.

Russia's Aeroflot was among several firms to pull out of the bidding.

'Absurd'

Rome's handling of the sale process, which collapsed on Wednesday, was heavily criticised.

Interested parties claimed they were not given access to critical information about the firm's finances and unworkable conditions were attached to the terms of the deal.

It should be sold for even one euro if we find anyone willing to revive it Antonio di Pietro Infrastructure minister

Italian Prime Minister Romano Prodi has said the government is considering a range of options for the airline's future.

But calls have grown for Alitalia to be allowed to go bankrupt despite the damage to national pride that such a move would cause.

"It should be sold for even one euro if we find anyone willing to revive it or we need to let it file for bankruptcy," Mr di Pietro stressed.

"To have a loss-making flag carrier is absurd. When something is diseased, you need to amputate it."

Alitalia has suffered crippling losses in recent years as frequent industrial problems, fierce competition from low-cost carriers and high costs have taken their toll.

The airline is currently losing more than 1m euros ($1.3m; �672,000) a day.