Shugrue Abruptly Exits as President of Continental

After only a year in the job, Martin R. Shugrue resigned Friday as president of troubled Continental Airlines, and industry analysts said they believed that he had been forced out.

Shugrue, who had been ousted early last year as vice chairman of Pan American World Airways in a dispute over that carrier’s demands for union wage concessions, “will pursue other opportunities,” a brief announcement by Continental said.

D. Joseph Corr, Continental’s new chairman and chief executive officer, said in the announcement: “I want to express our sincere appreciation to Marty for his untiring efforts on behalf of the airline.” Corr joined Continental on Dec. 6 after leaving his job as president of Trans World Airlines.

“Continental was top-heavy with management,” said Daniel A. Hersh, airline analyst for the Bateman Eichler, Hill Richards investment firm in Los Angeles. “I think Corr is going to take a more active role in running the airline. There were too many layers. I don’t think he was happy with what Shugrue was doing.”

Higher Loss Predicted

Another analyst, who spoke on the condition that he not be identified, said: “I would be shocked if he had not been fired. Things have been horrendous at Continental.” He predicted that the airline, which is owned by the Texas Air holding company, will report a 1988 loss of about $300 million, up from $258 million in 1987.

Edward Starkman, airline analyst with the New York investment firm Paine Webber, said Shugrue might not have had a good relationship with Frank Lorenzo, chairman of Texas Air.

“There are two kinds of people,” Starkman said, “those who get along with Frank Lorenzo and those who don’t, and I guess he fits in the latter category. I would guess he was not satisfied with his role.”

When Shugrue went to Continental, he succeeded Thomas G. Plaskett, who is now chairman of Pan American. Plaskett headed Continental for less than a year.