NATION

Joseph R. O’Gorman stepped down as the head of Frontier Airlines and was replaced by an executive from People Express, the airline that recently took over the Denver-based carrier. Larry R. Martin, a 36-year-old managing officer with People Express, becomes the youngest president of a major airline in the nation, said Ed Stukane, a People Express spokesman.

People Express, a Newark, N.J.-based carrier built on no-frills service and cut-rate fares with no restrictions, bought Frontier on Nov. 22.

O’Gorman, Frontier’s chief executive and president, said in a statement that he “had accomplished what he set out to with the resolution of the ownership issue at Frontier and that, now that the change of control is complete, it is time to push on to other things.”

Martin was one of the first employees hired by People Express, coming to the company in February, 1981, two months before the airline’s first flight.

He had previously held management positions with Northwest Airlines and Hughes Airwest.

Martin dealt primarily with marketing and operations at People Express, Stukane said.

Frontier, founded in 1946, was one of the West’s major independent carriers. It grew from a short-hop Colorado airline to a full-fledged carrier serving 89 cities in 27 states, Canada and Mexico at its peak.

Deregulation of the airline industry took its toll, and Frontier’s fortunes began to slump in 1982. Frontier lost $31.4 million in 1984 and began looking for a buyer during 1985.

After talking with an employee group and with Texas Air Corp., a deal was struck with People Express for about $300 million.

People Express, on the other hand, flourished under deregulation. It has expanded to about 50 cities, including destinations in Europe and Canada.