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Troubled carrier Alitalia cannot sustain two hubs in its current state, Italy's industry minister told a newspaper on Sunday, as the airline plans to nearly halve routes at Milan's Malpensa Airport as part of a survival plan.

Minister Pierluigi Bersani added in comments to Italian newspaper Il Messaggero: «The development of Malpensa cannot be entrusted to a company which risks bankruptcy.»

«Alitalia, now more than ever in its current state, cannot sustain two hubs,» Bersani said.

Alitalia could cut 150 flights at Malpensa -- around half its total there -- a union source has said, as part of a survival plan drawn up after no one wanted to buy the airline.

Low-cost carrier Ryanair this week stepped into Alitalia's backyard saying it was ready to launch 80 routes from Milan airports Orio al Serio, where it already operates, and Malpensa, a new departure, with planes worth more than USD$1 billion from its fleet.

Regional Affairs Minister Linda Lanzillotta also stepped into the debate on the planned scaleback with remarks in Corriere della Sera's Sunday edition.

«The Alitalia crisis is inevitably linked with the role of Malpensa, which must be protected and developed,» Lanzillotta told the newspaper.

«Malpensa has the right to be developed, and it seems to me Ryanair's offer goes in that direction. One certainly cannot make Alitalia act against market logic... It has already done so long enough, and the consequences are in front of everyone's eyes.»

The planned Malpensa revamp has come under fire in Italy's north. Milan Mayor Letizia Moratti and Lombardy Governor Roberto Formigoni are to meet officials in Rome on Friday, Corriere della Sera said, adding the topic was likely to come up.

Transport Minister Alessandro Bianchi said on Saturday the ministry is to hold a Monday meeting to discuss Alitalia slots at Malpensa, adding it would be «silly» not to consider Ryanair's offer.

State-controlled Alitalia announced a survival plan in August that included scaling back its presence at Malpensa, after an attempt by the government to sell the airline flopped in July. Management must now find a buyer.

Alitalia, which has hubs at Malpensa and Rome's Fiumicino, reported a slightly smaller first-half loss on Wednesday but warned that results would fall short of forecasts.

(Reuters)