Madoria Carnival
Upon arriving at the Carnival, have some fun if you like and try all the fun nifty things it has to offer. You can also find Holy Water along the East side of the area and also an Angel's Tear in 3rd travel car in the North end of the Carnival. Talk to the Shop Owner in the North end (just off to the East of the pathway) as well to modernize your equipment with anything you may need. Once you've done that, talk to Giban.
When you talk to Giban, Leo shows up about halfway in the conversation and Giban tactfully gets rid of him for now. He then points out that Lucia needs some casual clothes cause her current attire sticks out like a sore thumb. About that point, all the ladies go into the middle cart. Walk up as Hiro and Ronfar to the middle cart door to watch two rather funny movie sequences. Once everyone is back together, talk to Giban again.
Once you've talked with Giban, talk with the man next to the Magic Arrow. Just as everyone is boarding the Magic Arrow, Leo shows up again! The party manages to get inside and lift off, but no before Leo changes the direction of the Magic Arrow. Enjoy the flight...