ROME, Jan. 16 (Xinhua) -- The future of Italy's struggling flagship air carrier Alitalia could be decided this month, as the government is evaluating whether to finalize a loan to the company for 400 million euros (442 million U.S. dollars), money that will be used to help keep the company remain afloat as it seeks a buyer.

According to "il sole 24 ore", an Italian national daily business newspaper, the Senate will have only until Jan. 31 to decide about the new round of funds. Without the extra money, Alitalia said it would have to start closing services.

Media reports also reported that Alitalia will have to pay back the loan within six months. That could hinder efforts to find a buyer for the company since paying back the massive loan would be one of the first orders of business for a new owner.

Alitalia, which news reports said is losing money at the rate of nearly 1 million euros (1.1 million U.S. dollars) per day, has been struggling to find a partner willing to take on its problems of heavy debt, a bloated workforce, and an aging aircraft fleet. Potential suitors that include United States-based airline Delta and German carrier Lufthansa -- in both cases with Italian non-airline partners -- have either fallen through or failed to gain traction.

It is not clear whether there is enough support in parliament to approve a new loan for the company. News reports said lawmakers are split on the measure.

If Alitalia were to cease operations -- a long-term possibility for the company if it fails to find a buyer -- it would make Italy the major economy in Europe to operate without a flagship air carrier. Enditem

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