As part of its plan to stay competitive in reaction to the entry of Southwest Airlines into Denver, the company underwent a reorganization early in 2006. On April 3, 2006, Frontier created Frontier Airlines Holdings (FRNT), a holding company incorporated in Delaware to take advantage of favorable tax laws in that state. The corporate headquarters did not leave Colorado. In 2007, Frontier established a commuter airline subsidiary, Lynx Aviation, Inc., chaired by Dr. Paul Stephen Dempsey. Also that year, Jeff Potter left the company and was replaced by Air Canada's Sean Menke as CEO.