The Ship

After destroying the Dreadnought, Princess Hilda will ask that you travel by ship to the island where the Dragoons live. For those who aren't familiar, Dragoons, also known as Dragon Knights are soliders who've mastered the ability to communicate with and to fight from the back of a drake or dragon. In this case the Dragoons live on an island with the Wind Drakes, and Princess Hilda feels they will be a valueable ally in the fight with the Emporer.

Hed to Paloom and you'll encounter a butsy wench who's willing to sell you passage to the island. Unsurprisingly she turns out to be a pirate and tries to plunder all of your belongings. Beat the snot out of her and she'll change her tune, agreeing to join your party and turn over control of the ship to yours truly. Congratulations!

If you want to circumvent some of the tedious nature of the game you can take the ship and sail straight for Mystidia, which is roughly south west of Atlair. Farther west than south. If you choose to do so note that the monster's you'll encounter on the land while trying to reach the town will crush you, and you're only real hope is to run from every battle and pray you reach the town in time. That said, Mystidia sells weapons, armor, and spells that far surpass anything you're going to find for many more hours of gameplay. Its all very expenseive, though, so stock up on gil before going.