Heinkel He-112 V-1 (Source: Heinkel combat Aircraft)

When the RLM held its fighter competition in 1935 it was widely expected that the Heinkel entry would win the production order for the new fighter for the Luftwaffe. The Heinkel He-219 owed much to the Heinkel He-70 Blitz fast passenger aircraft. The Heinkel He-112 had an open cockpit that gave good visibility to the pilot. In contrast to the Messerschmitt entry the He-112 has a wide tracj undercarriage.

When the flight trails started in Rechlin and Travemunde it quickly became clear that the He-112 and the Me-109 were greatly superior to the other two entries in the competition. In the end the 109's greater maneuverability and slightly higher speed tilted the balance in favor of the 109. An added advantage of the 109 was its greater simplicity and ease of manufacture. 

After the decision to in favor of the 109, Heinkel continued to develop the He-112. The design was further refined, resulting in an aircraft that had very little in common with the He-112 A-series. The first B-series protoype was rolled out in April 1937. The RLM however had no interest in the Heinkel design. When this became clear Heinkel tries to export his fighter. Several aircraft were sold to Hungary and Romania.

Heinkel He-112 V-3 (Source: Heinkel combat Aircraft)

Heinkel He-112 A-03 (Source: Heinkel combat Aircraft)

Heinkel He-112 B-0 (Source: AJ Press Monografie: Messerschmitt Me-109 Cz. 1)

Heinkel He-112 B (Source: Heinkel Combat Aircraft)

Heinkel He-112 development (Source: Heinkel He-112 in action)