Airbus called for compensation to take on money-losing Spirit operations, sources say

Airbus has called for financial compensation to take on money-losing operations from Spirit AeroSystems, a demand that has emerged as one obstacle to a tie-up deal between the supplier and its main customer Boeing people familiar with the matter said. Spirit and Airbus executives are holding talks in New York, first reported by Bloomberg, to try and work through issues such as the European planemaker's demands for financial compensation to take on the supplier's loss-making operations. They also include the mechanics of separating Airbus' business from Spirit, said two of the sources who spoke on condition of anonymity. It was not clear how the talks progressed or whether any of the obstacles were resolved. The world’s dominant aircraft makers have been exploring how to untangle their respective ties with Spirit through a carefully timed "framework" deal to split operations, Reuters reported in April. The sources did not give financial details, but industry sources have said a UK Airbus plant run by Spirit needs a $1b-plus re-investment to dig it out of losses. Boeing is focused on acquiring its key aerostructures supplier, which produces the fuselage for its 737 MAX jet. In order for Boeing to regain control, it has to deal with its arch-rival Airbus, which accounts for roughly one-fifth of Spirit revenues.<br/>Boeing is seen likely to oppose payments to Airbus to take operations. It wants to close the deal to focus on ramping-up slumping MAX production, one of the sources said.<br/>