The future of Italian flag carrier Alitalia is uncertain

Maurizio Prato said the firm was in a "comatose" state and could not repay the more than 1bn euros ($1.4bn, �690m) it owes over the next three years.

The firm is set to lose 400m euros this year, Mr Prato added.

An auction for the Italian government's 49.9% state in Alitalia collapsed in July. The hunt is on for a new suitor.

'State of denial'

Mr Prato said a strong alliance was needed if its fortunes were to be turned around.

"It's on life support and I'm very surprised by the almost general state of denial," he said.

The unions were also criticised for not being helpful in attempts to turnaround the company.

"They negotiate, but then they overrule us and ask for a meeting with the government," he said.

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

No clear potential suitor has emerged so far, though domestic rival Air One met with Alitalia's sale adviser last week.

Russian airline Aeroflot, another of the three parties shortlisted in July's failed auction, said that it was not still in the bidding.

Rome's handling of the sale process 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.