 III "Gruppe" was formed on 1 February 1940 at Wiener Neustadt, Austria.The He 111P was used to equip the group and received aircraft and crews from I. and II./KG 54 as well and crews from training programs.By mid-March the "Gruppe" was fully formed and was training at Celle from 18–31 March 1940, as Bissel 1–7 April, at Vechta from 8 April–16 May 1940.