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German night bomber losses averaged less then 1% of sorties during 1940 to 1941.
The key to German success in BoB is tactics. Massive British air defense system was almost useless at night prior to 1942.
This is actually not the case. Even the B-17 had difficulties in defending itself. German bombers were nowhere near as heavily armed as Allied bombers.The bigger bombers had a lot more guns and armor, not to mention a less dangerous enemy in the East
And yet the Soviets were able to put up effective air defenses against Axis fighter sweeps and bomber missions.Germany had the best air defense system in the world from 1941-1944 (when Britain took that title), so comparing that to the Soviets for example is not exactly a fair comparison; the Soviets lacked an integrated air defense network, so couldn't organize big wing fighter attacks on German bombers like the Brits could. They also lacked heavy enough cannons to drop them until the P39 showed up in 1943.
The trouble with strategic bombers is that they are not a quick fix, they are a weapon for the long term, and that is the one thing that Nazi Germany couldn't afford to do, was get into a long term conflict with either the Western powers or the Soviet Union, their greater resources would eventually doom Nazi Germany.
Germans don't need to (and shouldn't) mimic American and British heavy bomber programs. They could build something similar to Do-317 powered by DB606 engines and have it in mass production during fall of 1940. Better suited to their needs then B-17s and B-24s.
The RAF and the USAAF took till at least 1944 before they could hit anything hard enough and consistently enough to knock it out for more than a few hours. Somehow in 1941 or 42 the LW is going to get a load of shiny new 1944 technology bombers with fully trained crews, all the lessons the Allies learnt in about 3 years will be learnt seemingly instantly.
The He 111 operated in the same capacity as in previous campaigns on the Eastern Front. The bomber was asked to perform strategic bombing functions. Targeting Soviet industry had not been high on the OKL's agenda in 1941-42, but prior to the Battle of Kursk several attempts were made to destroy Soviet military production. The tank factory at Gorkovskiy Avtomobilniy Zavod (GAZ) was subjected to a series of heavy attacks throughout June 1943. On the night of 4/5 June, He 111s of Kampfgeschwader 1, KG 3, KG 4, KG 55 and KG 100 dropped 161 tonnes (179 tons) of bombs, causing massive destruction to buildings and production lines. All of GAZ No. 1 plant's 50 buildings, 9,000 m (29,500 ft) of conveyers, 5,900 pieces of equipment and 8,000 tank engines were destroyed.[56]
Soviet fighter opposition was not so much of an issue in 1941-43, but by 1944 it was not able to be overcome given the issues affecting the Germans. Using night raids on Gorki, as historically happened, would have ben very feasible due to the closeness of it to German air bases with AG-Center and the ability to use radio navigation systems like EGON, which was like the RAF OBOE system. Germany also had a pathfinder force in KG100 that could set the fires to home in bomber forces.The He 111 also formed the core of the strategic bombing offensive later in the year. During the Soviet Lower Dnieper Offensive He 111 Geschwader performed strike missions. Reichsmarschall Hermann Göring issued an order to General Rudolf Meister's IV. Fliegerkorps on 14 October 1943:
Soviet fighter opposition had made strategic bombing in daylight too costly and so German bombers crews were retrained in the winter of 1943/44 to fly night operations. The offensive began on the night of the 27/28 March 1944, with some 180 to 190 He 111s taking part and dropping an average of 200 tons of bombs. On the night of 30 April/1 May 1944, 252 soI intend to initiate systematic attacks against the Russian arms industry by deploying the bulk of the heavy bomber units [mostly equipped with medium bombers] - reinforced by special units - which will be brought together under the command of IV. Fliegerkorps. The task will be to deal destructive strikes against the Russian arms industry in order to wipe out masses of Russian tanks, artillery pieces and aircraft before they reach the front, thus providing the hard-pressed Ostheer [East Army] with relief which will be much greater than if these bombers were deployed on the battlefield.[57]
One point about the fuel requirements; don't forget whats needed for training is significant. And you need to put up multiple bombers in the air as part of the training regime for formation practice. The tons of fuel required just for a group training mission is quite impressive. Dont say that this would have no implications for training requirements for the whole LW.