Ex-Continental Chief Named to Lead Valujet Operations

ValuJet Airlines on Monday hired a former head of Continental Airlines to run its daily operations, allowing its top executives to concentrate on bolstering the carrier’s finances and its public image.

The moves come five weeks after Atlanta-based ValuJet emerged from a three-month grounding over safety concerns in the wake of the Florida Everglades crash that killed 110 people.

D. Joseph Corr, who also formerly held a senior position at Trans World Airlines, will oversee the airline’s daily business and hold the titles of president and chief executive.

Robert L. Priddy, ValuJet’s founder and chairman, is stepping back from managing the discount carrier to concentrate on running its holding company, ValuJet Inc.

Lewis Jordan, who became ValuJet’s public face as it rebounded from the crash, will take over Priddy’s duties as ValuJet Airlines chairman. He retains his title as president and chief operating officer of the holding company.

Previously, Priddy held the title of CEO and Jordan was president of the airline.

“It’s not a wholesale change in management but it’s a significant change,� said airline analyst Aaron Hollander of First Equity Group.

ValuJet shares rose 11 cents to $9.86 on Nasdaq.

The addition of Corr allows Jordan to spend more time repairing ValuJet’s image with government regulators and with the flying public. ValuJet has resumed limited service but the May 11 crash remains under investigation.

During the grounding, Jordan dealt with regulators, appeared before Congress and handled media interviews while overseeing the airline’s daily business.

“With everything I was trying to coordinate . . . I could see I was stretching pretty thin,� Jordan said Monday in an interview. “We realized, through the course of the summer, my role was becoming more important in the world of external affairs.�

Recently, Corr has headed his own companies, D. Joseph Corr Inc. and AirCorr Inc.

Priddy, ValuJet’s largest individual shareholder, will continue working mostly behind the scenes by exploring new ventures for the parent company, whose only holding now is ValuJet Airlines. Jordan said the company will probably not delve outside the airline business.