Under that government regulation, the industry has produced the safest mode of transportation ever seen, healthy competition, and extremely low prices. If that's an example of what government regulation produces, I say bring it on!

It's certainly not entirely the governments fault. Airlines need to be strongly regulated with good reason and pretending that they don't lobby and campaign to increase regulation that acts as a barrier to entry is myopic at best.

Why did you assume the OC meant the regulators was bad rather than their capture?

any regulator is bound to be captured because the special interest has more concentrated power compared to consumers.

Thus regulation always does the opposite of what it is supposed to do in the long run. This is a common theme with interference with the free market.

I'm not sure it has to be that way, though the more complex the regulations are the easier it is to influence regulators.