May 2 (Reuters) - Airbus has called for

financial compensation to take on money-losing operations from

Spirit AeroSystems ( SPR ), a demand that has emerged as one

obstacle to a tie-up deal between the supplier and its main

customer Boeing ( BA ), 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 $1

billion-plus re-investment to dig it out of losses.

Boeing ( BA ) is focused on acquiring its key aerostructures

supplier, which produces the fuselage for its 737 MAX jet. In

order for Boeing ( BA ) to regain control, it has to deal with its

arch-rival Airbus, which accounts for roughly one-fifth of

Spirit revenues.

Boeing ( BA ) 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.

"They want it done so that things can be stabilized and

prepare the entire production system to go up in rate," he said.

Separating Spirit's Airbus business involves both

transferring plants and extracting part of the work from others,

a second source said. Spirit's money-losing Belfast plant is one

of the sticking points currently being worked through, two of

the sources said.

Spirit reports earnings on May 7.

An Airbus spokesperson reiterated it was engaged in talks

over its Spirit-based operations and declined further comment.

Boeing ( BA ) also declined comment.

Spirit Aero spokeman Joe Buccino said "irrespective of

negotiations, we are and will always lock in on quality, safety,

and the highest engineering rigor."

Airbus CEO Guillaume Faury told Reuters last month it was

"not unlikely" that Airbus would assume control of Belfast and

the Kinston, North Carolina, plant where Spirit makes part of

the A350.

Spirit was spun off from Boeing ( BA ) in 2005 and quickly set

about diversifying to supply Airbus, which is now its

second-biggest customer behind Boeing ( BA ). It still makes about 70%

of Boeing's ( BA ) best-selling 737, including the fuselage, and

supplies large parts of the 787.

The saga has revived concerns over the future of Northern

Ireland's largest manufacturing employer and its 3,400 staff

after Spirit stepped in to acquire it from struggling Bombardier

in 2019.

As well as building wings for the Airbus A220 it has been

expanding into defence and space.