I take that flight often: EK to/from LCA and LCA-TLV with Aegan. In the few cases I did take luggage in the hold, I picked it up and checked in again. The connection time is quiet long and there's not much else to in LCA airport anyway. More importantly, I live in the UAE and I prefer authorities (i.e. Emirates) not to know I'm travelling to TLV. That being said, I suppose you can interline...