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Your goal is clear - defeat Gao the Greater to rescue Kang the Mad, after which he'll lend you his flyer. Gao is at the island's top building, but there are a few obstacles to deal with and some treasure to snatch beforehand.
1 - Arrival
After traversing all of the ramps and platforms on the Lower Pirate Island, you're finally approaching the pirates' final two buildings.
2 - Hangar Battle
When you first enter, you'll encounter two Horse Demons and two Rat Demons (one of the Horse Demons is replaced with a Rhino Demon if you're playing the PC version). Take care of the Rat Demons quickly, then focus on the other two. Every time you attack a Horse Demon, you take a small amount of fire damage, so be careful. If you run out of Chi, keep in mind that you can always switch to Spirit Thief. Fortunately none of the demons are immune to weapon styles, so equipping your favorite weapon is perhaps your fastest way of defeating them.
3 - Scrollstand
The text on this scrollstand is entitled Jade Empire Bestiary, Volume 4.
4 - Bamboo Cask
This cask contains 500 silver pieces and a random essence gem (such as an Inferior Warrior Gem or a Flawed Monk Gem).
5 - Scrollstand
This scrollstand doesn't contain any text, but instead provides you with the Configuration of the Horse plot item.
6 - Chest
Ransack this chest for 750 silver pieces and a random essence gem (such as an Inferior Intuition Gem or a Warrior's Gem of Fate).
7 - The Marvelous Dragonfly/Pirate Battle
Kang's finest flyer invention, The Marvelous Dragonfly, is suspended at the top of this hangar. You'll need to defeat Gao the Greater before Kang will make it worthy of flight, though.
When you first reach the center of the hangar, an Ogre and five pirate guards will enter the room. Use the large open space to evade their attacks and take them out one by one.
8 - Gate
You won't be able to reach the area beyond this gate until you activate the Dragonfly controls at area #9.
9 - Dragonfly Controls
Activating these controls will cause the Marvelous Dragonfly to drop to the floor of the hangar and fire a missile at the gate in front of it (area #8). Blasting the gate open to reveal the area beyond earns you 500 experience points.
10 - Bookstand
The text on this bookstand is entitled The History of Flight, Volume 2.
11 - Xianshi
Before you can plunder Gao's vault, you'll need to face its guardian, an Elephant Demon named Xianshi who attacks with immense power. Your best bet is to close in quickly, jump over, get a flurry with your weapon in from behind, then jump back out of range as he turns around and begins his mighty attack. Repeat this tactic and the demon should fall without much of a problem.
12 - Chest
This trapped chest contains a decent amount of silver.
13 - Cabinet
Search this cabinet to find 450 silver pieces and a random essence gem (such as an Aura of Calm Gem or a Gem of Gentle Mind).
14 - Focus Shrine
Meditating at a Focus Shrine will restore all of your character's Focus.
15 - Vase
Smashing this vase will earn you another 550 silver pieces.
16 - Chest
This chest contains 350 silver pieces, a Gem of the Frail Scholar, and a random essence gem (such as an Inferior Charm Gem or a Gem of Evil Thought).
17 - Chest
This final chest will net you 971 silver pieces and a random essence gem (such as an Inferior Monk Gem or an Inferior Scholar Gem).
18 - Gao the Greater
You'll finally do battle with Gao the Greater when you reach this final section of the workshop. If you've already closed or sabotaged the Great Dam and obtained the Wind Map from the Great Southern Forest, then Gao will be accompanied by Inquisitor Lim and you'll have to fight them both. Otherwise, Gao will have three pirates to aid him in this battle. It's a tough fight, but the basic evasion tactics you've used elsewhere should get you through this one as well.
When the battle concludes, Sky will reveal his reasons for being here and offer to permanently join your party. Kang will also show up and pull the lever to the southeast that opens the upper bay doors in the hangar below. Approach him once you reach the hangar again and he'll mention that he still needs an Inscrutable Power Source to get the Marvelous Dragonfly up and running. Once you've encountered Wild Flower and Chai Ka at the Dam Site, you'll have the item he seeks. When you turn it over, Kang fires up the flyer and you'll have the option to participate in the third Flyer Mission before returning to Tien's Landing.
19 - Chest
Gao's chest contains the Zither Case plot item needed for a side quest back in Tien's Landing.
20 - Bookstand
The text on this bookstand is entitled The History of Flight, Volume 3. If you've read all of the other The History of Flight texts up to this point, then you will receive the Strength of Wood technique automatically.
21 - Bonsai Tree
Kick over this tree to uncover a random essence gem (such as an Inferior Intimidation Gem or an Inferior Intuition Gem).