The chief executive of Dublin radio station NewsTalk 106, Mr Aidan Dunne, has resigned after 14 months. Emmet Oliver reports.

He will be replaced by 98FM chief executive Mr Dan Healy, who is credited with transforming 98FM into the leading independent station in Dublin.

Mr Healy has, in recent years, worked closely with NewsTalk 106's largest shareholder, Mr Denis O'Brien, who also owns 98FM. Mr O'Brien is believed to strongly support the move. He recently said he was committed to NewsTalk, although he is believed to want certain changes.

Mr Dunne, a former managing director of McConnells advertising agency, is likely to return to the advertising industry following his spell at NewsTalk.

Mr Healy, who has previously worked in The Irish Times and the Sunday Tribune, will begin working at NewsTalk almost immediately.

Staff at the station were informed of the changes yesterday. The move requires the final sanction of the Broadcasting Commission of Ireland (BCI).

Commenting on his new appointment, Mr Healy said: "NewsTalk is a great product. It has a great line-up but its personality needs to be marketed and communicated," he said.

The station has found it difficult to build a large audience in Dublin, although its last set of figures showed a slight improvement. "It is the most exciting challenge in Irish broadcasting today and I am looking forward to meeting that challenge," said Mr Healy.

Meanwhile at 98FM, marketing manager Mr Ciarán Davis will take over as chief executive. Mr Davis and Mr Healy have worked together closely since late 1999. Both are credited with the "Fugitive" promotion, which gave 98FM a major boost in listenership earlier this year. The station currently has 17 per cent market share, compared to 14 per cent for rival FM104.

The chairman of NewsTalk 106, Mr John Purcell, paid tribute to the leadership of Mr Dunne during a challenging time.

"The JNLR figures released in August gave the board and the employees a good deal of comfort in that there was a clear signal of movement upwards in our listenership.

"Aidan Dunne and the work of the great team at NewsTalk 106 have produced a positive result and we are confident the figures due for release next month will consolidate and build on the achievements to date," Mr Purcell said.

The board of Newstalk 106 said an estimated €2.5 million would be raised in the coming months to fund the station. This funding will be raised from all shareholders.

The current shareholdings are: Denis O'Brien's Radio 2000, 45.97 per cent; Capital Radio Ltd, owners of FM104, 15.39 per cent; Setanta Media, 13.08 per cent; Hyper Trust, which is linked to CKR Radio, 14.02 per cent; and Kalacastle, which is linked to LMFM, 9.79 per cent.

The remainder is held by South East Radio, Clare Community Radio, Midland Radio and Western Community (Galway Bay FM).

Mr Purcell said the station's shareholders remained upbeat about its prospects. We know we have the product and we know we have a superb team throughout the organisation. The crucial commercial success has taken more time than any of us would have wished, but we know what we need to do and we are more confident than ever," he added.