In the Soviet Union, all pilots were armed. I don't think plane hijackings happened very often.
For everyone to be armed is inviting terrorism. Keeping pilots and stewardesses armed so that defense is possible in the event of terrorism is a lot simpler, and probably more effective, than present airport security procedure.
If the private sector took over airport security, it would be free to allow only pilots, stewardesses, etc to have guns on the plane (I find it absurd that the TSA checks pilots for weaponry too, like they need a gun to hijack their own plane). There might be a higher chance of a terrorist having a gun too because of less intrusive checks, but that terrorist would be less effective with an armed crew. Furthermore, no groping, radiation, etc would be needed.
Don't misinterpret him here; he isn't saying that every airport must allow everyone to stroll onto the plane like a walking armory. He is saying that each individual airport should deal with its own security as opposed to having the TSA grope everyone and fail to catch bombers regardless. It would, if nothing else, be far better than the current system.