The Minister for Defence, Mr Smith, has opened the competition to fill the post of general officer commanding (GOC) of the Air Corps to senior officers from the Army and Naval Service as well as the Air Corps.
The decision, which is to be announced in coming weeks, is a major departure as the Air Corps has traditionally filled senior posts from its own ranks.
The competition for the post will be open to all officers of the rank of colonel in the Army and of captain in the Naval Service.
Around 30 officers are thought to be eligible. According to senior military sources, it is likely the post will be filled by an Army officer.
The move is seen by senior military sources as stemming from the Government's concerns about the ability of the Air Corps.
The Government has been concerned at the Air Corps' operational record.
Its search and rescue function has largely been contracted out to a private company since an incident on November 16th, 1995, when a Co Wexford fisherman, Mr Timmy Currid, drowned when his trawler The Scarlet Buccaneer ran aground in Howth harbour.
Although there was an Air Corps Dauphin helicopter stationed at Baldonnel Aerodrome, 15 miles away, the Marine Rescue Co-ordination Centre was forced to call the Royal Air Force's rescue helicopter from north Wales.
The RAF helicopter flew 60 miles across the Irish Sea in rough weather but Mr Currid, who had a young family, drowned shortly before it arrived.
Concerns about the Air Corps' record on training and the relatively low amount of flying carried out continued after the Howth incident.
These concerns were heightened by the loss of a helicopter crew off the coast of Co Waterford in July 1999.
Capt Dave O'Flaherty, Capt Michael Baker, Sgt Paddy Mooney and Cpl Niall Byrne were killed when the aircraft hit a sand dune at Tramore strand.
In another incident in February last year another Air Corps helicopter came very close to crashing with the loss of its pilot and three Garda passengers on a flight from Shannon to Dublin. The pilot lost control of the aircraft when it flew into cloud but it recovered and landed safely.
In November 24, 1999, Defence Forces Headquarters was forced to issue an apology after the Minister was berated by an officer from the Air Corps at a public function in north Dublin.
Comdt Aidan Flanagan, head of the helicopter wing, accused the Minister of "inaction" over the provision of staff and aircraft coverage which, he said, had adversely affected morale.
In recent years the Air Corps has been unable to provide a reliable transport service for the Government with very little helicopter transport available for the Taoiseach or Ministers.
The Government jet service has also on occasions been curtailed and the Gulfstream jet has regularly to land at Dublin Airport when Baldonnel Aerodrome is unable to provide a landing service.
Senior military figures have also been concerned that members of the Air Corps have been conducting what they see as a public relations campaign against the Minister and Government.
The new appointment comes as the Air Corps is facing a major organisational overhaul and the largest re-equipment programme in its history.
The corps is to receive five medium-lift helicopters, jet trainers and a new Government jet in the next two years.
The contract for the medium-lift helicopters is expected to be announced in late September by which time a new commanding officer is expected to be appointed to replace Brig Gen Patrick Cranfield who retired last week.
In the interim, Brig Gen Cranfield's second-in-command, Col John O'Brien, will act in a caretaker capacity.