I haven’t been able to do an all out attack on Italy yet, but…
If Germany completely stays away from any Sea Lion, then I would send 2 fighters and a bomber from England to attack SZ 97.
Use the Gibraltar Fighter to attack SZ 96 (Hopefully alongside a Cruiser).
If the SZ 91 Cruiser is dead, then you can send a Destroyer to tag along with the Gibralta Fighter in SZ 96.
(The battle in SZ 97 would then be around 80% chance to win if Axis scrambles.)
The Gib Fighter, Malta Fighter, SZ 98 Tac and England Strategic Bomber will land in Malta.
The Italians will probably be left with just their few ships in SZ 95 and their bomber.
Now about any counter attacks…
Whatever UK ships that remain in SZ 97 is susceptible to a German counter attack (via Luftwaffe) leaving the rest in the Mediterranean to Italy with her remaining ships and air force. However, all units in Malta would be pretty much guaranteed to be safe. (Assuming the Destroyer and Transport off Malta are destroyed.)
But if the Axis are smart enough to not scramble…
If the attack in SZ 96 is successful, then Italy will only have 1 transport, 1 cruiser, 2 fighters and 1 bomber to attack Malta with. Malta is still probably safe, but most likely at quite a cost to both Italy and UK if Italy invades.
(I’m assuming that all of the planes that will land in Malta survive.)
Italy cannot replace its units as easily as UK does and since Germany will probably be focusing on Russia, UK will be focusing on Italy. So although Italy may have its Mediterranean NO, it would only be a matter of time before UK beats them back. Italy might also have USA breathing down its neck after Turn 4.
Haven’t tried any of this out yet on the Europe map alone, but I’ve been wondering about how would this end up.