It makes perfect sense when you put it in historical perspective. In March 1948, Northwest flight 4422, a DC-4, crashed into a mountain in Alaska. The fireball was witnessed from the ground, but after extensive search, the wreckage was not found. It was a hot topic at the time, and one of big concern to NW executives. Given the concerns, an artist that came up with a color scheme that claimed to help locate downed aircraft would have a big advantage over other designs.

If the logo design contest was in 2008, an artist that came up with a color scheme that saves fuel would probably win.

By the way, the wreckage of NW4422 was later found, in 1997, 49 years after the crash.