Capitalism is not working in this case since making faulty aircrafts should not be possible, by regulation, in the first place. Waiting for market to react give

Capitalism is not working in this case since making faulty aircrafts should not be possible, by regulation, in the first place. Waiting for market to react gives companies to sort of "binary search" the market to find a sweet spot where they don't overspend on engineering, or underspend on engineering by making faulty aircrafts. The point of having regulation is to force companies not be able to perform this "binary search" so that there is a baseline they have to spend on engineering to be able to produce a commercial airliner.