Real capitalists would want the regulation removed, so that the public could have a free market choice between expensive safe airlines and cheap dangerous ones.
Except that being realistic, there's no way for an average member of the public to determine whether an airline - particularly a small one - is operating reasonably safely or not. Even for the larger carriers, I don't think you could get a statistically valid indication as to whether BA is safer than Air France based on hull losses alone.
Headline accidents are rare enough to make it impossible for anyone with an appreciation of statistics to use them as a guide. And as the only clue accessible to the passenger regarding the quality of the engine maintenance, is the state of the soft furnishings in the cabin, which will be prioritised by management in the absence of regulation?