Kaby Lake seems a natural fit for the MacBook Air and MacBook Pro lines in late 2016. The significant advances in GPU might finally be enough for Apple to fully drop iGPU in the larger MBP.
I highly doubt the MBA will be phased out before the release of Cannonlake in late 2017.
I highly doubt the MBA will be phased out before the release of Cannonlake in late 2017.