I traveled AlItalia from Bombay to Milan and back last week. Possibly the worst Airline I have travelled by. I got the tickets booked through office and did not know it was a cheap airline and given that I was travelling at a short notice, AlItalia was the only set of tickets I got.
Pros:
They are relatively easy going on excess baggage compared to other European Airlines. I was able to speak to the check in person and get in around 26KGs when the limit is 20KGs. Air France last year had me offload some of my luggage even though I was only 4-5 KGs in excess.
Decent flying experience: The overall journey was pretty smooth despite it being an old aircraft! Both the times, the pilots gave us a very smooth ride! It was pretty late when I boarded at Bombay and went off to sleep before take off. I did not realise when the flight took off and was asleep for almost 4 hours after that :-)
Cons:
Pretty much everything else!
Air Staff - They are really rude. Compared to the other Italians I met elsewhere, the staff in the flight was unbelievably rude.
Food - This was the first time I have heard a flight being out of food. They did not have even basics like Milk and Sugar and expect everyone to drink black coffee Italian style
Staff strength - They had only 4 cabin crew members in the economy class. And if you are sitting in the last rows, chances of them running out of drinks (even coke) or food are very high! And it will be almost an hour before you get your food if you are in the last row.
I have also heard that they are terrible with your luggage and tend to misplace it. However, I did not have such an experience. If you travel with Al Italia, do carry important documents etc. with you on person.
Given a choice between AlItalia and Air India, I will fly Air India!