My answer to them is the same as my reply to Quiggin. The oil cartel broke just as market economics said it would, and now we're floating on oil. The same holds for Australia's skies. So long as no artificial barriers are put in place of foreign entrants, prices will be kept at competitive levels. Profits attract competition.
Foreign airlines can therefore only 'sew up' the market by using low prices to deter competitors.
It is a myth that cartelisation can survive in a free market environment. Perhaps that is why there is no historical evidence to support the likes of Quiggin. The reasons for this are basically simple. Airlines, for example, would have to allocate quota's. This means that the more efficient airlines would have to cutback on services and sacrifice income in order for their less efficient colleagues to survive.