Augustus was one of the most special NPCs of Pantheon. Even in the later stages of the game, Blade Peak where he resided was an absolute no-fly zone for players with flying mounts.
No one dared to fly past Blade Peak's surroundings. Red Dragon Queen's Fury would destroy anyone or anything that flew past. There was only one way to reach Augustus, and that was to climb.
As to why Augustus forbade players from flying, the official web gave an answer. Although Augustus successfully brought Red Dragon Queen to heel, up to now, Red Dragon Queen has never allowed him to ride her. Strictly speaking, his Dragon Rider title was more in name than reality.
The quests distributed by Augustus were particular. These quests were completely random and could range from anything to everything but there were no repeats. Moreover, the number of these quests distributed were based on the total number of Hall of Fame records achieved by a player.