Dan Healy has been announced as the new CEO of RTÉ 2fm.

Healy, who had previously worked with The Irish Times, 98fm and Newstalk, is currently CEO of Independent Radio Sales. He was also a co-founder of the youth radio station, iRadio.

The appointment is a surprise move for Healy – and as a result has caused considerable alarm in independent radio circles. ""I never thought of Dan as an RTE man," one senior industry source commented.

The appointment reflects an increasing drive in RTE to compete aggressively for advertising revenue. Healy's experience with IRS – and the extent to which he knows the inside-out of the deals that are being done across the industry – will potentially be a huge asset to the national broadcaster.

A report in the Irish Times today conforms that RTE's deficit for 2012 will exceed €60 million. Commercial income at the broadcaster has fallen by €14 million – approximately 8% – over the past 12 months

"I am absolutely delighted to accept the appointment as Head of RTÉ 2fm," Dan Healy said yesterday afternoon, in an official statement. "It is a wonderful and challenging opportunity to play a significant role in the further development of the station. It's a well-worn phrase in radio circles, but it's also true that RTÉ 2fm is a sleeping giant. It plays a hugely important role in providing outstanding music, sport, entertainment, news and information to its legion of listeners.

"There are big commercial challenges ahead for the station, but 2fm has the listenership base, the talent and the energy to turn around. My goal is to make 2fm the most-listened-to music and entertainment station in Ireland."

Clare Duignan, Managing Director, RTÉ Radio said: "I'm delighted today to announce Dan Healy as the new Head of RTÉ 2fm. Dan's track record in the industry is unparalleled.

"2fm is a core priority for RTÉ – it's vital that RTÉ, as the public service broadcaster, meet the needs of younger listeners and this appointment is a significant statement of confidence in the future of 2fm."