Troubled Italian airline Alitalia`s debts have soared to some 2.3 billion euros, the company`s special administrator said Sunday as a pilot and air crew strike caused a seventh day of cancelled flights.

Augusto Fantozzi told RAI television he had `around two billion in ordinary debt for the supply of goods and services,` before taking into account a 300-million-euro government loan.

Alitalia`s last publicly-recorded debts going back to mid-2008 were 1.2 billion euros, although that figure did not include bills from suppliers.

Fantozzi said ongoing negotiations with prospective new owners would deliver `the highest level possible` of fresh funds with which to repay its debts, but that these would only constitute `a part` of the 2.9-billion-dollar sum.

He also said that there was a risk that Italian taxpayers would have to contribute.

State aid from Rome was initially judged by the European Commission to be illegal, but the commission last Wednesday gave approval for a group of private investors to take over assets of Alitalia while ruling that they would not have to repay the 300-million-euro loan.

The ruling sparked a complaint from rival airline Ryanair.

The Italian Air Company (CAI), a group of Italian business people, made a binding takeover offer last month for the air passenger transport activities of Alitalia, which was put in special administration in August.

A new, relaunched airline was due to rise from Alitalia`s ashes on December 1. The current Alitalia has burnt through three million euros a day, leaving it crippled by spiralling debts.

Further flights from and to Rome and Milan were cancelled on Sunday as pilots and air crew continued to strike, Italian agencies reported.

Around 30 flights were cancelled Sunday morning at Rome-Fiumicino and Milan Linate airports and more cancellations were expected throughout the day, said the airport agency Telenews and Italian news channel Sky Tg24.

On Saturday the airline grounded 50 flights in or out of Rome.

Alitalia pilots and other staff are striking in protest at the takeover deal.

Under the terms of its offer, CAI would take on 12,500 Alitalia workers but cut some 3,250 jobs.

Italy`s government -- which holds a 49.9 percent stake -- has indicated it would seek disciplinary sanctions for the workers and unions involved.

Alitalia has warned passengers to expect further delays next week.