First, where did government create the problem. From all indications the problem was created by the airlines scheduling more flights than the airports can handle. What happens when too many flights are scheduled? Some are delayed. The government merely instructed airlines to schedule according to airport capacity. Why is that a problem?
Second, what do you mean by "allowing airlines to protect their passengers" and what does this have to do with flight delays. Again, I haven't seen anything suggesting that safety regulations have caused flight delays. Maybe they have. I don't know. But, surely there is evidence of this if it is the case.