The B735s were originally due to leave the fleet in 2003 when the then 5 new A320s arrived but their retirement was postponed due to an upsurge in traffic.
The remaining 7 B738s and 6 E-170s arriving by 2009 will take care of the loss of the 'Baby Boeing' capacity.
MSR001, I believe the 6th B738 will arrive by year end to be operated on GVA. The seventh will go onto VIE in early 2009.
LCA, BUD, BEN, EBB, ALP are currently all-B735 ops. In addition KRT, DAM, BAH, etc see the aircraft several times a week.
What is planned for TLV (and Air Sinai)?
Certainly an end of an era. Now for the 5 1991 build A320s...