Maps like the included Apple maps require a data connection as they stream the map image data to the device. There are plenty of standalone map apps though, that store the map data directly on the device. Apps like CityMaps2Go work fine off the grid or in airplane mode.
The location system also does not need any network connection as it does have a fully capable GPS receiver built into the phone. Initial location fixes are faster when you have cellular and/or wifi connections, but they still work without those. IPhones and cellular iPads are used for navigation without any network connection all the time by pilots, boaters, hikers, etc. If you want more than just the compass, just get yourself a suitable offline maps app from the App Store.