Can we have Airport Security without tyranny?

Since terror is once again on peoples' minds following the incident on Christmas Day, and governments are clamping down even further on air travel, I thought I'd suggest an alternative approach to airport security that doesn't involve depriving citizens of their rights.
(this cartoon spoke too soon, see: http://www.infowars.com/lurid-butt-bomb-threat-used-to-expand-airport-full-body-scans/)

Free Market, Freedom of Choice

At the moment, the government's approach to airport security is to pass rules and regulations. Passengers can only be allowed to carry X baggage and not Y. Passengers shall be searched before boarding. Security shall watch passengers looking for anything suspicious. Baggage shall be scanned. No exceptions. 'If you aren't doing anything wrong, you have got nothing to hide'.

In other words, anyone - like myself - who would rather have less intrusive security and take my chances with whatever may come, is denied any choice on the matter. And I'm sure I'm not the only one who is put off by the idea of flying today, having to be guilty until proven innocent.

The solution to this dilemma is simple - allow individual airlines to take responsibility for their own security! Simples. Any airline has a massive business/competition incentive to guarantee a safe journey for their passengers. If you didn't feel safe on one airline, you'd fly with the competitor! On the other hand, if you felt security was too stringent or intrusive on one airline, you would also be able to choose another one that better suited your demands.

The wonders of the free market never cease, do they? This way, the people take their power back to fly the way they want. If you want your bags searched and liquids banned, you can have that. If you do not, likewise. Also, the influence of individual choice would lead to incentives for airport security to be more respectful of citizens (nothing like the risk of losing customers to motivate a business into action).

Now, why can't we do this instead of having government stamp arbitrary rules on the whole process? It is starting to resemble a ghetto in today's airports...the absurdity of it all. I would 'feel safer' if government let us have freedom to choose.