I read that they are looking into getting embraer's and CRJ's.
2 with an option for two more. But Will that be instead of their 757 to Europe?

Arkia Airlines Ltd. is considering a $120 million investment to buy or lease four 70-100 seat jets with a range of 2,000 miles for flights to Cyprus and other regional destinations. The airline is examining CRJ 700 and CRJ 900 jets building by Canada’s Bombardier Inc. (TSX:BBD) and Embraer 170 and 175, built by Brazil’s Embraer-Empresa Brasileira De Aeronutica SA (NYSE:ERJ; Bovespa:EMBR3). Arkia initially plans to buy or lease two planes, followed by two more at a later date. These planes use short runways, which means that they can operate out of Tel Aviv’s Sde Dov Airport. Arkia is planning several flights per day, including to Cyprus, where it began to fly at the beginning of March
Globes.co.il

Maybe arkia will have a dream fleet of ...
Embraer 170/175
737-800/-900ER
789
748

at the end.