"Better yet, it needs to be replaced with a competitive market for air travel in which the airports, the airways, and the airliners are in private hands. Some might object that private firms will have incentives to cut corners on safety. It is a legitimate concern, but competitive mechanisms tend to weed this out.'"
This is clearly crap. There is definitely a role for the government to play in security. What has been well documented is that prior to 9/11/01 the FAA tried to have upgraded cockpit doors and locks installed on airliners. This was resisted by the airlines, as it would cost money and take planes out of service while being upgraded.
Private enterprise cares not about safety, or anything else that cuts into profits. Turn security over to them, and the result will be that the airlines will do a risk analysis of the security measures, coupled with legal terms attached to the purchase of a ticket limiting rights to sue and disclaiming any liability, and proceed to fly with the greatest profit margin they can.
Before you object, take a look at product safety issues though history, and see how many times people were killed by products because of defects or design decisions the manufacturer was aware of, but chose not to fix because of a risk and cost / benefit analysis.